Key Insights

• EverQuote will host its Annual General Meeting on 6th of June
• Salary of US$375.0k is part of CEO Jayme Mendal's total remuneration
• The overall pay is 33% below the industry average
• Over the past three years, EverQuote's EPS fell by 40% and over the past three years, the total loss to shareholders 24%

The underwhelming performance at EverQuote, Inc. (NASDAQ:EVER) recently has probably not pleased shareholders. At the upcoming AGM on 6th of June, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. From our analysis below, we think CEO compensation looks appropriate for now.

Comparing EverQuote, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that EverQuote, Inc. has a market capitalization of US$844m, and reported total annual CEO compensation of US$4.1m for the year to December 2023. We note that's an increase of 48% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$375k.

On comparing similar companies from the American Interactive Media and Services industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$6.2m. That is to say, Jayme Mendal is paid under the industry median. Furthermore, Jayme Mendal directly owns US$4.9m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 24% of total compensation represents salary, while the remainder of 76% is other remuneration. EverQuote 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 EverQuote, Inc.'s Growth Numbers

EverQuote, Inc. has reduced its earnings per share by 40% a year over the last three years. Its revenue is down 33% over the previous year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 EverQuote, Inc. Been A Good Investment?

Since shareholders would have lost about 24% over three years, some EverQuote, Inc. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for EverQuote that you should be aware of before investing.

Important note: EverQuote is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.