Ari Bousbib has been the CEO of IQVIA Holdings Inc. (NYSE:IQV) since 2016. First, this article will compare CEO compensation with compensation at other large 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 Ari Bousbib's Compensation Compare With Similar Sized Companies?
According to our data, IQVIA Holdings Inc. has a market capitalization of US$32b, and paid its CEO total annual compensation worth US$16m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$1.6m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$11m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
As you can see, Ari Bousbib is paid more than the median CEO pay at large companies, in the same market. However, this does not necessarily mean IQVIA Holdings Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at IQVIA Holdings, below.
Is IQVIA Holdings Inc. Growing?
Over the last three years IQVIA Holdings Inc. has grown its earnings per share (EPS) by an average of 2.7% per year (using a line of best fit). It achieved revenue growth of 6.5% over the last year.
I'd prefer higher revenue growth, but I'm happy with the modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. It could be important to check this free visual depiction of what analysts expect for the future.
Has IQVIA Holdings Inc. Been A Good Investment?
I think that the total shareholder return of 114%, over three years, would leave most IQVIA Holdings Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
We compared total CEO remuneration at IQVIA Holdings Inc. with the amount paid at other large companies. As discussed above, we discovered that the company pays more than the median of that group.
While we generally prefer to see stronger EPS growth, there's no arguing with the strong returns to shareholders, over the last three years. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at IQVIA Holdings.
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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