Scott Howe became the CEO of LiveRamp Holdings, Inc. ( NYSE:RAMP ) in 2011. First, this article will compare CEO compensation with compensation at similar sized companies. 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 Scott Howe’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that LiveRamp Holdings, Inc. has a market cap of US$4.1b, and is paying total annual CEO compensation of US$5.4m. (This number is for the twelve months until March 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$670k. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$4.7m.
So Scott Howe 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 LiveRamp Holdings has changed from year to year.
Is LiveRamp Holdings, Inc. Growing?
Over the last three years LiveRamp Holdings, Inc. has grown its earnings per share (EPS) by an average of 5.0% per year (using a line of best fit). It achieved revenue growth of 151% over the last year.
It’s hard to interpret the strong revenue growth as anything other than a positive. And in that context, the modest EPS improvement certainly isn’t shabby. So while I’d stop short of saying growth is absolutely outstanding, there are definitely some clear positives! It could be important to check this free visual depiction of what analysts expect for the future .
Has LiveRamp Holdings, Inc. Been A Good Investment?
Most shareholders would probably be pleased with LiveRamp Holdings, Inc. for providing a total return of 175% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Scott Howe is paid around the same as most CEOs of similar size companies.
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So we can conclude that on this analysis the CEO compensation seems pretty sound. Whatever your view on compensation, you might want to check if insiders are buying or selling LiveRamp Holdings shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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