In 2000 Roy Tjay Thung was appointed CEO of Independence Holding Company (NYSE:IHC). First, this article will compare CEO compensation with compensation at similar sized companies. 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 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$564m, and is paying total annual CEO compensation of US$2.1m. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$485k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.9m.
So Roy Tjay Thung is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
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 30% a year, over the last three years (using a line of best fit). Its revenue is up 8.0% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.
Has Independence Holding Company Been A Good Investment?
I think that the total shareholder return of 124%, over three years, would leave most Independence Holding Company shareholders smiling. 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.
Roy Tjay Thung is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Independence Holding.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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