Darryl Graham Rawlings has been the CEO of Trupanion, Inc. (NASDAQ:TRUP) since 2000. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
How Does Darryl Graham Rawlings's Compensation Compare With Similar Sized Companies?
According to our data, Trupanion, Inc. has a market capitalization of US$1.0b, and pays its CEO total annual compensation worth US$876k. (This figure is for the year to December 2018). That's a notable increase of 58% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$300k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.7m.
Most shareholders would consider it a positive that Darryl Graham Rawlings takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Trupanion has changed from year to year.
Is Trupanion, Inc. Growing?
Over the last three years Trupanion, Inc. has grown its earnings per share (EPS) by an average of 89% per year (using a line of best fit). In the last year, its revenue is up 24%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to check this free visual report on analyst forecasts for future earnings.
Has Trupanion, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Trupanion, Inc. for providing a total return of 103% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It looks like Trupanion, Inc. pays its CEO less than similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The strong history of shareholder returns might even have some thinking that Darryl Graham Rawlings deserves a raise!
It's not often we see shareholders do so well, and yet the CEO is paid modestly. But it is even better if company insiders are also buying shares with their own money. Shareholders may want to check for free if Trupanion insiders are buying or selling shares.
If you want to buy a stock that is better than Trupanion, this free list of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.