Should You Worry About Independence Holding Company’s (NYSE:IHC) CEO Pay?
Roy Tjay Thung has been the CEO of Independence Holding Company (NYSE:IHC) since 2000. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Independence Holding
How Does Roy Tjay Thung’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Independence Holding Company has a market cap of US$536m, and is paying total annual CEO compensation of US$3m. That’s actually a decrease on the year before. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO compensation was US$2m.
As you can see, Roy Tjay Thung is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Independence Holding Company 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.
The graphic below shows how CEO compensation at Independence Holding has changed from year to year.
Is Independence Holding Company Growing?
Independence Holding Company has increased its earnings per share (EPS) by an average of 33% a year, over the last three years Its revenue is up 9.2% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Independence Holding Company Been A Good Investment?
Boasting a total shareholder return of 172% over three years, Independence Holding Company has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
We compared total CEO remuneration at Independence Holding Company with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. So you may want to check if insiders are buying Independence Holding Company shares with their own money (free access).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
