John Winfield became the CEO of The InterGroup Corporation (NASDAQ:INTG) in 1987. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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 John Winfield’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that The InterGroup Corporation has a market cap of US$81m, and is paying total annual CEO compensation of US$935k. That’s actually a decrease on the year before. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$288k.
Thus we can conclude that John Winfield receives more in total compensation than the median of a group of companies in the same market, and of similar size to The InterGroup Corporation. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at InterGroup has changed over time.
Is The InterGroup Corporation Growing?
The InterGroup Corporation has reduced its earnings per share by an average of 5.1% a year, over the last three years. Its revenue is up 3.7% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. The modest increase in revenue in the last year isn’t enough to make me overlook the disappointing change in earnings per share. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has The InterGroup Corporation Been A Good Investment?
The InterGroup Corporation has served shareholders reasonably well, with a total return of 25% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
We examined the amount The InterGroup Corporation pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.We think many shareholders would be underwhelmed with the business growth over the last three years.
While shareholder returns are acceptable, they don’t delight. So we think more research is needed, but we don’t think the CEO underpaid. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling The InterGroup Corporation (free visualization of insider trades).
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
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 email@example.com.