Yahoo Finance Is Inogen, Inc.'s (NASDAQ:INGN) CEO Overpaid Relative To Its Peers?
Scott Wilkinson became the CEO of Inogen, Inc. (NASDAQ:INGN) in 2017. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Inogen
How Does Scott Wilkinson's Compensation Compare With Similar Sized Companies?
According to our data, Inogen, Inc. has a market capitalization of US$1.1b, and paid its CEO total annual compensation worth US$2.7m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$494k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$2.7m.
That means Scott Wilkinson receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Inogen has changed over time.
Is Inogen, Inc. Growing?
Over the last three years Inogen, Inc. has grown its earnings per share (EPS) by an average of 32% per year (using a line of best fit). It achieved revenue growth of 21% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Inogen, Inc. Been A Good Investment?
Given the total loss of 3.4% over three years, many shareholders in Inogen, Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Scott Wilkinson is paid around what is normal the leaders of comparable size companies.
We think that the EPS growth is very pleasing, but it's disappointing to see negative shareholder returns over three years. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. So you may want to check if insiders are buying Inogen shares with their own money (free access).
Important note: Inogen 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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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
