Yahoo Finance How Much Does IHS Markit's (NYSE:INFO) CEO Make?
Lance Uggla has been the CEO of IHS Markit Ltd. (NYSE:INFO) since 2017, 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.
View our latest analysis for IHS Markit
Comparing IHS Markit Ltd.'s CEO Compensation With the industry
At the time of writing, our data shows that IHS Markit Ltd. has a market capitalization of US$32b, and reported total annual CEO compensation of US$13m for the year to November 2019. We note that's an increase of 17% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.2m.
For comparison, other companies in the industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$14m. This suggests that IHS Markit remunerates its CEO largely in line with the industry average. Furthermore, Lance Uggla directly owns US$96m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$1.2m | US$1.2m | 9% |
Other | US$12m | US$10.0m | 91% |
Total Compensation | US$13m | US$11m | 100% |
Speaking on an industry level, nearly 20% of total compensation represents salary, while the remainder of 80% is other remuneration. In IHS Markit's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at IHS Markit Ltd.'s Growth Numbers
IHS Markit Ltd.'s earnings per share (EPS) grew 52% per year over the last three years. It achieved revenue growth of 2.1% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has IHS Markit Ltd. Been A Good Investment?
Boasting a total shareholder return of 71% over three years, IHS Markit Ltd. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
As we noted earlier, IHS Markit pays its CEO in line with similar-sized companies belonging to the same industry. The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue that CEO compensation is quite modest, if you consider company performance! Also, such solid returns might lead to shareholders warming to the idea of a bump in pay.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 2 warning signs for IHS Markit you should be aware of, and 1 of them can't be ignored.
Important note: IHS Markit is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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.
