Is eXp World Holdings, Inc.’s (NASDAQ:EXPI) CEO Paid Enough Relative To Peers?

In 2013 Glenn Sanford was appointed CEO of eXp World Holdings, Inc. (NASDAQ:EXPI). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for eXp World Holdings

How Does Glenn Sanford’s Compensation Compare With Similar Sized Companies?

Our data indicates that eXp World Holdings, Inc. is worth US$717m, and total annual CEO compensation was reported as US$1.1m for the year to December 2018. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$87k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. 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$2.6m.

Most shareholders would consider it a positive that Glenn Sanford takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see, below, how CEO compensation at eXp World Holdings has changed over time.

NasdaqGM:EXPI CEO Compensation, January 31st 2020
NasdaqGM:EXPI CEO Compensation, January 31st 2020

Is eXp World Holdings, Inc. Growing?

eXp World Holdings, Inc. has reduced its earnings per share by an average of 26% a year, over the last three years (measured with a line of best fit). Its revenue is up 115% over last year.

The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching. It could be important to check this free visual depiction of what analysts expect for the future.

Has eXp World Holdings, Inc. Been A Good Investment?

I think that the total shareholder return of 222%, over three years, would leave most eXp World Holdings, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

It appears that eXp World Holdings, Inc. remunerates its CEO below most similar sized companies.

Glenn Sanford receives relatively low remuneration compared to similar sized companies. And the returns to shareholders were great, over the last few years. Although we could see higher growth, we’d argue the remuneration is modest, based on these observations. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling eXp World Holdings (free visualization of insider trades).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.

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