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Is VeriSign Inc (NASDAQ:VRSN) Overpaying Its CEO?

Jim Bidzos has been the CEO of VeriSign Inc (NASDAQ:VRSN) since 2011. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for VeriSign

How Does Jim Bidzos’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that VeriSign Inc has a market cap of US$18b, and is paying total annual CEO compensation of US$9.0m. That’s less than last year. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO compensation to be US$11m.

So Jim Bidzos receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

You can see, below, how CEO compensation at VeriSign has changed over time.

NasdaqGS:VRSN CEO Compensation November 23rd 18

Is VeriSign Inc Growing?

On average over the last three years, VeriSign Inc has grown earnings per share (EPS) by 14% each year. It achieved revenue growth of 4.1% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.

It could be important to check this free visual depiction of what analysts expect for the future.

Has VeriSign Inc Been A Good Investment?

I think that the total shareholder return of 67%, over three years, would leave most VeriSign Inc shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.

In Summary…

Jim Bidzos is paid around what is normal the leaders of larger companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance!

Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.