How Much Is Intercontinental Exchange, Inc. (NYSE:ICE) Paying Its CEO?

This article will reflect on the compensation paid to Jeff Sprecher who has served as CEO of Intercontinental Exchange, Inc. (NYSE:ICE) since 2000. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Intercontinental Exchange

Comparing Intercontinental Exchange, Inc.'s CEO Compensation With the industry

According to our data, Intercontinental Exchange, Inc. has a market capitalization of US$56b, and paid its CEO total annual compensation worth US$14m over the year to December 2019. That's mostly flat as compared to the prior year's compensation. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.1m.

For comparison, other companies in the industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$13m. From this we gather that Jeff Sprecher is paid around the median for CEOs in the industry. What's more, Jeff Sprecher holds US$461m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 14% of total compensation represents salary and 86% is other remuneration. Intercontinental Exchange sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Intercontinental Exchange, Inc.'s Growth Numbers

Intercontinental Exchange, Inc. has seen its earnings per share (EPS) increase by 13% a year over the past three years. In the last year, its revenue is up 10%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Intercontinental Exchange, Inc. Been A Good Investment?

We think that the total shareholder return of 58%, over three years, would leave most Intercontinental Exchange, 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, Jeff is compensated close to the median for companies of its size, and which belong to the same industry. Few would be critical of the leadership, since returns have been juicy and EPS are moving in the right direction. Indeed, many might consider that Jeff is compensated rather modestly, given the solid company performance! In fact, shareholders might even think the CEO deserves a raise as a reward due to the fantastic returns generated.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Intercontinental Exchange that investors should think about before committing capital to this stock.

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.

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