Marcos Eduardo Galperín became the CEO of MercadoLibre, Inc. (NASDAQ:MELI) in 1999. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Marcos Eduardo Galperín's Compensation Compare With Similar Sized Companies?
According to our data, MercadoLibre, Inc. has a market capitalization of US$26b, and paid its CEO total annual compensation worth US$8.7m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$553k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
That means Marcos Eduardo Galperín receives fairly typical remuneration for the CEO of a large company. 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 MercadoLibre has changed from year to year.
Is MercadoLibre, Inc. Growing?
MercadoLibre, Inc. has reduced its earnings per share by an average of 90% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 37%.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has MercadoLibre, Inc. Been A Good Investment?
I think that the total shareholder return of 217%, over three years, would leave most MercadoLibre, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Marcos Eduardo Galperín is paid around the same as most CEOs of large companies.
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So we can conclude that on this analysis the CEO compensation seems pretty sound. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at MercadoLibre.
If you want to buy a stock that is better than MercadoLibre, this free list of high return, low debt companies is a great place to look.
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