Does Liquidity Services, Inc.’s (NASDAQ:LQDT) CEO Pay Reflect Performance?

Bill Angrick became the CEO of Liquidity Services, Inc. (NASDAQ:LQDT) in 2000. 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Liquidity Services

How Does Bill Angrick’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Liquidity Services, Inc. has a market cap of US$220m, and is paying total annual CEO compensation of US$2.1m. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$380k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO compensation of that group was US$1.0m.

It would therefore appear that Liquidity Services, Inc. pays Bill Angrick 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 get a better idea of how generous the pay is by looking at the performance of the underlying business. So this free visualization of the analyst consensus on future earnings could help you make the right decision about whether to buy, sell, or hold.

You can see a visual representation of the CEO compensation at Liquidity Services, below.

NasdaqGS:LQDT CEO Compensation December 25th 18
NasdaqGS:LQDT CEO Compensation December 25th 18

Is Liquidity Services, Inc. Growing?

Over the last three years Liquidity Services, Inc. has grown its earnings per share (EPS) by an average of 37% per year. It saw its revenue drop -17% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end.

Has Liquidity Services, Inc. Been A Good Investment?

Given the total loss of 1.6% over three years, many shareholders in Liquidity Services, Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

We compared the total CEO remuneration paid by Liquidity Services, 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.

Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. Shareholders may want to check for free if Liquidity Services insiders are buying or selling shares.

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

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 editorial-team@simplywallst.com.