Will Febbo has been the CEO of OptimizeRx Corporation (NASDAQ:OPRX) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Will Febbo's Compensation Compare With Similar Sized Companies?
According to our data, OptimizeRx Corporation has a market capitalization of US$150m, and pays its CEO total annual compensation worth US$923k. (This figure is for the year to December 2018). That's a notable increase of 119% on last year. We think total compensation is more important but we note that the CEO salary is lower, at US$275k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$427k.
Thus we can conclude that Will Febbo receives more in total compensation than the median of a group of companies in the same market, and of similar size to OptimizeRx Corporation. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at OptimizeRx, below.
Is OptimizeRx Corporation Growing?
Over the last three years OptimizeRx Corporation has grown its earnings per share (EPS) by an average of 21% per year (using a line of best fit). It achieved revenue growth of 75% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 OptimizeRx Corporation Been A Good Investment?
Boasting a total shareholder return of 272% over three years, OptimizeRx Corporation has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared total CEO remuneration at OptimizeRx Corporation 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. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. Shareholders may want to check for free if OptimizeRx insiders are buying or selling shares.
If you want to buy a stock that is better than OptimizeRx, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at email@example.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.