Bill Angrick became the CEO of Liquidity Services, Inc. (NASDAQ:LQDT) in 2000. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
How Does Bill Angrick’s Compensation Compare With Similar Sized Companies?
Our data indicates that Liquidity Services, Inc. is worth US$217m, and total annual CEO compensation is US$1.2m. (This figure is for the year to September 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$380k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.0m.
So Bill Angrick receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Liquidity Services has changed from year to year.
Is Liquidity Services, Inc. Growing?
On average over the last three years, Liquidity Services, Inc. has grown earnings per share (EPS) by 34% each year (using a line of best fit). In the last year, its revenue is down -16%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. It could be important to check this free visual depiction of what analysts expect for the future.
Has Liquidity Services, Inc. Been A Good Investment?
Liquidity Services, Inc. has generated a total shareholder return of 16% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
Remuneration for Bill Angrick is close enough to the median pay for a CEO of a similar sized company .
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So considering these factors, we think the CEO pay is probably quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Liquidity Services.
Important note: Liquidity Services may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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