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Is RealPage, Inc.'s (NASDAQ:RP) CEO Overpaid Relative To Its Peers?

Simply Wall St

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Steve Winn became the CEO of RealPage, Inc. (NASDAQ:RP) in 1998. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for RealPage

How Does Steve Winn's Compensation Compare With Similar Sized Companies?

According to our data, RealPage, Inc. has a market capitalization of US$5.4b, and pays its CEO total annual compensation worth US$11m. (This figure is for the year to December 2018). We note that's an increase of 21% above last year. We think total compensation is more important but we note that the CEO salary is lower, at US$646k. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO total compensation was US$7.0m.

As you can see, Steve Winn is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean RealPage, Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at RealPage, below.

NasdaqGS:RP CEO Compensation, June 3rd 2019

Is RealPage, Inc. Growing?

Over the last three years RealPage, Inc. has grown its earnings per share (EPS) by an average of 36% per year (using a line of best fit). Its revenue is up 25% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. It could be important to check this free visual depiction of what analysts expect for the future.

Has RealPage, Inc. Been A Good Investment?

Boasting a total shareholder return of 156% over three years, RealPage, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We compared total CEO remuneration at RealPage, Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if RealPage insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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 editorial-team@simplywallst.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.