Yahoo Finance Why Zillow Group Inc’s (NASDAQ:ZG) CEO Salary Matters To You
In 2015 Spencer Rascoff was appointed CEO of Zillow Group Inc (NASDAQ:ZG). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. 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 Zillow Group
How Does Spencer Rascoff’s Compensation Compare With Similar Sized Companies?
According to our data, Zillow Group Inc has a market capitalization of US$8.4b, and pays its CEO total annual compensation worth US$8m. Notably, that’s an increase of 124% over the year before. We examined companies with market caps from US$4.0b to US$12.0b, and discovered that the median CEO compensation of that group was US$7m.
So Spencer Rascoff is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Zillow Group, below.
Is Zillow Group Inc Growing?
Zillow Group Inc has increased its earnings per share (EPS) by an average of 27% a year, over the last three years Its revenue is up 23% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Zillow Group Inc Been A Good Investment?
Boasting a total shareholder return of 47% over three years, Zillow Group Inc has done well by shareholders. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
In Summary…
Spencer Rascoff is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Zillow Group Inc.
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings 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.
