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Pete Aquino became the CEO of Internap Corporation (NASDAQ:INAP) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Pete Aquino's Compensation Compare With Similar Sized Companies?
Our data indicates that Internap Corporation is worth US$89m, and total annual CEO compensation is US$3.0m. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$505k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$470k.
As you can see, Pete Aquino is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Internap Corporation is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Internap has changed over time.
Is Internap Corporation Growing?
Internap Corporation has increased its earnings per share (EPS) by an average of 34% a year, over the last three years (using a line of best fit). It achieved revenue growth of 12% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.
Has Internap Corporation Been A Good Investment?
With a three year total loss of 66%, Internap Corporation would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared the total CEO remuneration paid by Internap Corporation, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Internap.
If you want to buy a stock that is better than Internap, 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 firstname.lastname@example.org. 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.