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

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Glenn Sanford became the CEO of eXp World Holdings, Inc. (NASDAQ:EXPI) in 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for eXp World Holdings

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

At the time of writing our data says that eXp World Holdings, Inc. has a market cap of US$624m, and is paying total annual CEO compensation of US$1.8m. (This figure is for the year to December 2018). That’s a notable increase of 132% on last year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$59k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.7m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see a visual representation of the CEO compensation at eXp World Holdings, below.

NasdaqGM:EXPI CEO Compensation, June 5th 2019
NasdaqGM:EXPI CEO Compensation, June 5th 2019

Is eXp World Holdings, Inc. Growing?

eXp World Holdings, Inc. has reduced its earnings per share by an average of 57% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 203% over the last year.

Investors should note that, over three years, earnings per share are down. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. It’s hard to reach a conclusion about business performance right now. This may be one to watch. You might want to check this free visual report on analyst forecasts for future earnings.

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

I think that the total shareholder return of 459%, 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 looks like eXp World Holdings, Inc. pays its CEO less than 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. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. So you may want to check if insiders are buying eXp World Holdings shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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. Thank you for reading.