Yahoo Finance We Think Some Shareholders May Hesitate To Increase Tiptree Inc.'s (NASDAQ:TIPT) CEO Compensation
Key Insights
Tiptree's Annual General Meeting to take place on 30th of April
Total pay for CEO Jonathan Ilany includes US$1.00m salary
The total compensation is 130% higher than the average for the industry
Tiptree's total shareholder return over the past three years was 35% while its EPS was down 41% over the past three years
Performance at Tiptree Inc. (NASDAQ:TIPT) has been reasonably good and CEO Jonathan Ilany has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 30th of April. However, some shareholders may still want to keep CEO compensation within reason.
See our latest analysis for Tiptree
Comparing Tiptree Inc.'s CEO Compensation With The Industry
According to our data, Tiptree Inc. has a market capitalization of US$598m, and paid its CEO total annual compensation worth US$5.5m over the year to December 2023. Notably, that's an increase of 26% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.0m.
For comparison, other companies in the American Insurance industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$2.4m. Hence, we can conclude that Jonathan Ilany is remunerated higher than the industry median. Furthermore, Jonathan Ilany directly owns US$25m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.0m | US$1.0m | 18% |
Other | US$4.5m | US$3.4m | 82% |
Total Compensation | US$5.5m | US$4.4m | 100% |
Speaking on an industry level, nearly 13% of total compensation represents salary, while the remainder of 87% is other remuneration. Tiptree is paying a higher share of its remuneration through a salary in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Tiptree Inc.'s Growth Numbers
Over the last three years, Tiptree Inc. has shrunk its earnings per share by 41% per year. Its revenue is up 21% over the last year.
The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Tiptree Inc. Been A Good Investment?
Most shareholders would probably be pleased with Tiptree Inc. for providing a total return of 35% 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.
To Conclude...
Some shareholders will be pleased by the relatively good results, however, the results could still be improved. We still think that some shareholders will be hesitant of increasing CEO pay until EPS growth improves, since they are already paid higher than the industry.
Shareholders may want to check for free if Tiptree insiders are buying or selling shares.
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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This article by Simply Wall St 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. Simply Wall St has no position in any stocks mentioned.
