Scott Stephenson has been the CEO of Verisk Analytics, Inc. (NASDAQ:VRSK) since 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Scott Stephenson's Compensation Compare With Similar Sized Companies?
Our data indicates that Verisk Analytics, Inc. is worth US$27b, and total annual CEO compensation was reported as US$7.7m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$1.0m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
So Scott Stephenson is paid around the average of 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 Verisk Analytics has changed over time.
Is Verisk Analytics, Inc. Growing?
Verisk Analytics, Inc. has increased its earnings per share (EPS) by an average of 10% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 8.2%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.
Has Verisk Analytics, Inc. Been A Good Investment?
I think that the total shareholder return of 100%, over three years, would leave most Verisk Analytics, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Scott Stephenson is paid around the same as most CEOs of large companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! Shareholders may want to check for free if Verisk Analytics insiders are buying or selling shares.
If you want to buy a stock that is better than Verisk Analytics, this free list of high return, low debt companies is a great place to look.
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