Strauss Zelnick became the CEO of Take-Two Interactive Software, Inc. (NASDAQ:TTWO) in 2011. First, this article will compare CEO compensation with compensation at other large companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Strauss Zelnick's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Take-Two Interactive Software, Inc. has a market cap of US$14b, and is paying total annual CEO compensation of US$329k. (This is based on the year to March 2019). We note that's an increase of 671% above last year. While we always look at total compensation first, we note that the salary component is less, at US$1.0. We looked at a group of companies with market capitalizations over US$8.0b and the 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.
Most shareholders would consider it a positive that Strauss Zelnick takes less in total compensation than the CEOs of most other large companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at Take-Two Interactive Software has changed over time.
Is Take-Two Interactive Software, Inc. Growing?
On average over the last three years, Take-Two Interactive Software, Inc. has grown earnings per share (EPS) by 66% each year (using a line of best fit). In the last year, its revenue is up 60%.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Take-Two Interactive Software, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Take-Two Interactive Software, Inc. for providing a total return of 207% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Take-Two Interactive Software, Inc. is currently paying its CEO below what is normal for large companies. Since the business is growing, many would argue this suggests the pay is modest. The strong history of shareholder returns might even have some thinking that Strauss Zelnick deserves a raise!
It's not often we see shareholders do so well, and yet the CEO is paid modestly. But it is even better if company insiders are also buying shares with their own money. So you may want to check if insiders are buying Take-Two Interactive Software shares with their own money (free access).
If you want to buy a stock that is better than Take-Two Interactive Software, this free list of high return, low debt companies is a great place to look.
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