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Why eXp World Holdings, Inc.'s (NASDAQ:EXPI) CEO Pay Matters To You

Simply Wall St

Glenn Sanford became the CEO of eXp World Holdings, Inc. (NASDAQ:EXPI) in 2013. First, this article will compare CEO compensation with compensation at similar sized 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. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for eXp World Holdings

How Does Glenn Sanford's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that eXp World Holdings, Inc. has a market cap of US$544m, and reported total annual CEO compensation of US$1.1m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$87k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.8m.

A first glance this seems like a real positive for shareholders, since Glenn Sanford is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.

The graphic below shows how CEO compensation at eXp World Holdings has changed from year to year.

NasdaqGM:EXPI CEO Compensation, October 28th 2019

Is eXp World Holdings, Inc. Growing?

eXp World Holdings, Inc. has reduced its earnings per share by an average of 46% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 154% over the last year.

As investors, we are a bit wary of companies that have lower earnings per share, over three years. On the other hand, the strong revenue growth suggests the business is growing. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. You might want to check this free visual report on analyst forecasts for future earnings.

Has eXp World Holdings, Inc. Been A Good Investment?

Boasting a total shareholder return of 84% over three years, eXp World Holdings, 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...

It appears that eXp World Holdings, Inc. remunerates its CEO below most similar sized companies.

Glenn Sanford is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years. Although we could see higher growth, we'd argue the remuneration is modest, based on these observations. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at eXp World Holdings.

If you want to buy a stock that is better than eXp World Holdings, this free list of high return, low debt companies is a great place to look.

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.