Arron Sutherland has been the CEO of ICC Holdings, Inc. (NASDAQ:ICCH) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Arron Sutherland's Compensation Compare With Similar Sized Companies?
According to our data, ICC Holdings, Inc. has a market capitalization of US$33m, and paid its CEO total annual compensation worth US$589k over the year to December 2019. That's a notable increase of 11% on last year. While we always look at total compensation first, we note that the salary component is less, at US$397k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$591k.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of ICC Holdings. On a sector level, around 20% of total compensation represents salary and 80% is other remuneration. According to our research, ICC Holdings has allocated a higher percentage of pay to salary in comparison to the broader sector.
So Arron Sutherland is paid around the average of the companies we looked at. 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. The graphic below shows how CEO compensation at ICC Holdings has changed from year to year.
Is ICC Holdings, Inc. Growing?
ICC Holdings, Inc. has reduced its earnings per share by an average of 8.7% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 16%.
Unfortunately, earnings per share have trended lower over the last three years. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has ICC Holdings, Inc. Been A Good Investment?
Since shareholders would have lost about 38% over three years, some ICC Holdings, Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Remuneration for Arron Sutherland is close enough to the median pay for a CEO of a similar sized company .
After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. This contrasts with the growth in CEO remuneration, in the last year. Suffice it to say, we don't think the CEO is underpaid! On another note, ICC Holdings has 2 warning signs (and 1 which doesn't sit too well with us) we think you should know about.
If you want to buy a stock that is better than ICC Holdings, this free list of high return, low debt companies is a great place to look.
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