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Should You Worry About Health Insurance Innovations, Inc.'s (NASDAQ:HIIQ) CEO Pay?

Simply Wall St

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Gavin Southwell has been the CEO of Health Insurance Innovations, Inc. (NASDAQ:HIIQ) since 2016. 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.

See our latest analysis for Health Insurance Innovations

How Does Gavin Southwell's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Health Insurance Innovations, Inc. has a market cap of US$362m, and is paying total annual CEO compensation of US$2.2m. (This figure is for the year to December 2018). That's below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at US$650k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.7m.

So Gavin Southwell receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at Health Insurance Innovations has changed over time.

NasdaqGM:HIIQ CEO Compensation, June 29th 2019

Is Health Insurance Innovations, Inc. Growing?

On average over the last three years, Health Insurance Innovations, Inc. has grown earnings per share (EPS) by 25% each year (using a line of best fit). Its revenue is up 34% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.

Has Health Insurance Innovations, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Health Insurance Innovations, Inc. for providing a total return of 492% 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.

In Summary...

Remuneration for Gavin Southwell is close enough to the median pay for a CEO of a similar sized company .

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Health Insurance Innovations (free visualization of insider trades).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.