This post was originally published on this site

View photos

Glenn Sanford has been the CEO of eXp World Holdings, Inc. (NASDAQ:EXPI) since 2013, and this article will examine the executive’s compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for eXp World Holdings

How Does Total Compensation For Glenn Sanford Compare With Other Companies In The Industry?

Our data indicates that eXp World Holdings, Inc. has a market capitalization of US$3.2b, and total annual CEO compensation was reported as US$1.4m for the year to December 2019. Notably, that’s a decrease of 24% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$72k.

For comparison, other companies in the same industry with market capitalizations ranging between US$2.0b and US$6.4b had a median total CEO compensation of US$2.4m. Accordingly, eXp World Holdings pays its CEO under the industry median. Furthermore, Glenn Sanford directly owns US$963m worth of shares in the company, implying that they are deeply invested in the company’s success.

Component 2019 2018 Proportion (2019)
Salary US$72k US$59k 5%
Other US$1.3m US$1.7m 95%
Total Compensation US$1.4m US$1.8m 100%

Speaking on an industry level, nearly 28% of total compensation represents salary, while the remainder of 72% is other remuneration. It’s interesting to note that eXp World Holdings allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation

A Look at eXp World Holdings, Inc.’s Growth Numbers

Over the past three years, eXp World Holdings, Inc. has seen its earnings per share (EPS) grow by 41% per year. Its revenue is up 61% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company’s future earnings..

Has eXp World Holdings, Inc. Been A Good Investment?

Boasting a total shareholder return of 672% over three years, eXp World Holdings, Inc. has done well by shareholders. 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.

To Conclude…

As we noted earlier, eXp World Holdings pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Since EPS growth is heading in a positive direction; many would agree with our assessment that the pay is modest. Plus, we can’t ignore the impressive shareholder returns, and won’t be surprised if some shareholders were to reward such excellent all-around performance with a raise.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 3 warning signs for eXp World Holdings that investors should look into moving forward.

Switching gears from eXp World Holdings, if you’re hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

This article by Simply Wall St is general in nature. 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. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.