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In 2016 Will Febbo was appointed CEO of OptimizeRx Corporation (NASDAQ:OPRX). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for OptimizeRx
How Does Will Febbo’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that OptimizeRx Corporation has a market cap of US$154m, and is paying total annual CEO compensation of US$420k. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$250k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO compensation was US$911k.
A first glance this seems like a real positive for shareholders, since Will Febbo is paid less than the average compensation paid by similar sized companies. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at OptimizeRx, below.
Is OptimizeRx Corporation Growing?
On average over the last three years, OptimizeRx Corporation has shrunk earnings per share by 9.6% each year (measured with a line of best fit). Its revenue is up 79% over last year.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has OptimizeRx Corporation Been A Good Investment?
Boasting a total shareholder return of 349% over three years, OptimizeRx Corporation has done well by shareholders. 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.
In Summary…
OptimizeRx Corporation is currently paying its CEO below what is normal for companies of its size.
Will Febbo 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. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at OptimizeRx.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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. On rare occasion, data errors may occur. Thank you for reading.