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Is IAC/InterActiveCorp’s (NASDAQ:IAC) CEO Pay Fair?

In 2015 Joey Levin was appointed CEO of IAC/InterActiveCorp (NASDAQ:IAC). This analysis aims first to contrast CEO compensation with other large 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 method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for IAC/InterActiveCorp

How Does Joey Levin’s Compensation Compare With Similar Sized Companies?

Our data indicates that IAC/InterActiveCorp is worth US$15b, and total annual CEO compensation is US$13m. We note that’s an increase of 24% above last year. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO compensation was US$11m.

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That means Joey Levin receives fairly typical remuneration for the CEO of a large company. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

You can see, below, how CEO compensation at IAC/InterActiveCorp has changed over time.

NasdaqGS:IAC CEO Compensation November 14th 18
NasdaqGS:IAC CEO Compensation November 14th 18

Is IAC/InterActiveCorp Growing?

Over the last three years IAC/InterActiveCorp has grown its earnings per share (EPS) by an average of 66% per year. It achieved revenue growth of 30% over the last year.

This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has IAC/InterActiveCorp Been A Good Investment?

I think that the total shareholder return of 177%, over three years, would leave most IAC/InterActiveCorp shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.

In Summary…

Joey Levin is paid around what is normal the leaders of larger companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling IAC/InterActiveCorp (free visualization of insider trades).

Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.