Harry Herington became the CEO of NIC Inc. (NASDAQ:EGOV) in 2008. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Harry Herington's Compensation Compare With Similar Sized Companies?
According to our data, NIC Inc. has a market capitalization of US$1.1b, and pays its CEO total annual compensation worth US$2.3m. (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$500k. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$2.7m.
So Harry Herington receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at NIC, below.
Is NIC Inc. Growing?
Over the last three years NIC Inc. has grown its earnings per share (EPS) by an average of 4.7% per year (using a line of best fit). Revenue was pretty flat on last year.
I'm not particularly impressed by the revenue growth, but it is good to see modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. You might want to check this free visual report on analyst forecasts for future earnings.
Has NIC Inc. Been A Good Investment?
Since shareholders would have lost about 20% over three years, some NIC Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
Harry Herington is paid around what is normal the leaders of comparable size companies.
The company cannot boast particularly strong per share growth. And we think the shareholder returns - over three years - have been underwhelming. So suffice it to say we don't think the compensation is modest. So you may want to check if insiders are buying NIC shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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