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Is Teladoc Health, Inc.'s (NYSE:TDOC) CEO Overpaid Relative To Its Peers?

Simply Wall St

In 2009 Jason Gorevic was appointed CEO of Teladoc Health, Inc. (NYSE:TDOC). 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 Teladoc Health

How Does Jason Gorevic's Compensation Compare With Similar Sized Companies?

According to our data, Teladoc Health, Inc. has a market capitalization of US$8.5b, and paid its CEO total annual compensation worth US$7.3m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$511k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO total compensation of that group was US$6.5m.

So Jason Gorevic is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

The graphic below shows how CEO compensation at Teladoc Health has changed from year to year.

NYSE:TDOC CEO Compensation, February 27th 2020

Is Teladoc Health, Inc. Growing?

On average over the last three years, Teladoc Health, Inc. has grown earnings per share (EPS) by 3.9% each year (using a line of best fit). It achieved revenue growth of 40% over the last year.

It's great to see that revenue growth is strong. With that in mind, the modestly improving EPS seems positive. I'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Shareholders might be interested in this free visualization of analyst forecasts.

Has Teladoc Health, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Teladoc Health, Inc. for providing a total return of 396% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Jason Gorevic is paid around the same as most CEOs of similar size companies.

While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So we can conclude that on this analysis the CEO compensation seems pretty sound. So you may want to check if insiders are buying Teladoc Health shares with their own money (free access).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.

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. Thank you for reading.