Is Stamps.com Inc.'s (NASDAQ:STMP) CEO Pay Justified?
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Ken McBride became the CEO of Stamps.com Inc. (NASDAQ:STMP) in 2001. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Stamps.com
How Does Ken McBride's Compensation Compare With Similar Sized Companies?
Our data indicates that Stamps.com Inc. is worth US$825m, and total annual CEO compensation is US$2.7m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$792k. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO total compensation was US$2.7m.
That means Ken McBride receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Stamps.com, below.
Is Stamps.com Inc. Growing?
Stamps.com Inc. has increased its earnings per share (EPS) by an average of 45% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 19%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Stamps.com Inc. Been A Good Investment?
With a three year total loss of 36%, Stamps.com Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Remuneration for Ken McBride is close enough to the median pay for a CEO of a similar sized company .
We like that the company is growing EPS, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Stamps.com.
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.
