What Did Teladoc Health's (NYSE:TDOC) CEO Take Home Last Year?

Jason Gorevic has been the CEO of Teladoc Health, Inc. (NYSE:TDOC) since 2009, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Teladoc Health pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Teladoc Health

Comparing Teladoc Health, Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that Teladoc Health, Inc. has a market capitalization of US$17b, and reported total annual CEO compensation of US$8.0m for the year to December 2019. We note that's an increase of 9.1% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$515k.

On comparing similar companies in the industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$9.0m. So it looks like Teladoc Health compensates Jason Gorevic in line with the median for the industry. Furthermore, Jason Gorevic directly owns US$142m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 14% of total compensation out of all the companies we analyzed, while other remuneration made up 86% of the pie. Teladoc Health pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Teladoc Health, Inc.'s Growth Numbers

Teladoc Health, Inc. has seen its earnings per share (EPS) increase by 9.7% a year over the past three years. Its revenue is up 45% over the last year.

It's great to see that revenue growth is strong. Combined with modest EPS growth, we get a good impression of the company. So while we'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! 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 Teladoc Health, Inc. Been A Good Investment?

We think that the total shareholder return of 563%, over three years, would leave most Teladoc Health, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

As previously discussed, Jason is compensated close to the median for companies of its size, and which belong to the same industry. But the business isn't reporting great numbers in terms of EPS growth. On the other hand, shareholder returns over the same period have been very healthy. So while shareholders shouldn't be overly concerned about CEO compensation, we suspect most would prefer to see improved performance, before a bump in pay.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Teladoc Health that you should be aware of before investing.

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.

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.