Is LivePerson Inc's (NASDAQ:LPSN) CEO Paid At A Competitive Rate?

In 1995 Rob LoCascio was appointed CEO of LivePerson Inc (NASDAQ:LPSN). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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 LivePerson

How Does Rob LoCascio's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that LivePerson Inc has a market cap of US$1.3b, and is paying total annual CEO compensation of US$5.3m. Notably, that's an increase of 468% over the year before. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO compensation was US$3.6m.

Thus we can conclude that Rob LoCascio receives more in total compensation than the median of a group of companies in the same market, and of similar size to LivePerson Inc. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

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

Is LivePerson Inc Growing?

LivePerson Inc has increased its earnings per share (EPS) by an average of 7.6% a year, over the last three years Its revenue is up 11% over last year.

This revenue growth could really point to a brighter future. And the improvement in earnings per share is modest but respectable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has LivePerson Inc Been A Good Investment?

I think that the total shareholder return of 170%, over three years, would leave most LivePerson 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...

We examined the amount LivePerson Inc pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

While we generally prefer to see stronger EPS growth, there's no arguing with the strong returns to shareholders, over the last three years. Considering this fine result for investors, we daresay the CEO compensation might be apt.

Or you might prefer examine intentlythis intuitive graph showing past 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 editorial-team@simplywallst.com.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.