Jack Stover has been the CEO of Interpace Diagnostics Group, Inc. (NASDAQ:IDXG) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Interpace Diagnostics Group
How Does Jack Stover's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Interpace Diagnostics Group, Inc. has a market cap of US$25m, and is paying total annual CEO compensation of US$2.1m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$319k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$307k.
It would therefore appear that Interpace Diagnostics Group, Inc. pays Jack Stover more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Interpace Diagnostics Group has changed over time.
Is Interpace Diagnostics Group, Inc. Growing?
Interpace Diagnostics Group, Inc. has increased its earnings per share (EPS) by an average of 107% a year, over the last three years In the last year, its revenue is up 39%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Interpace Diagnostics Group, Inc. Been A Good Investment?
Given the total loss of 82% over three years, many shareholders in Interpace Diagnostics Group, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We compared the total CEO remuneration paid by Interpace Diagnostics Group, Inc., and compared it to remuneration at a group of similar sized companies. 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. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Shareholders may want to check for free if Interpace Diagnostics Group insiders are buying or selling shares.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
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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.
Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.