In 1989 Stanley Bergman was appointed CEO of Henry Schein, Inc. (NASDAQ:HSIC). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Stanley Bergman's Compensation Compare With Similar Sized Companies?
Our data indicates that Henry Schein, Inc. is worth US$9.5b, and total annual CEO compensation is US$6.5m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.4m. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO total compensation was US$6.8m.
So Stanley Bergman is paid around the average of the companies we looked at. 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.
You can see a visual representation of the CEO compensation at Henry Schein, below.
Is Henry Schein, Inc. Growing?
Henry Schein, Inc. saw earnings per share stay pretty flat over the last three years, albeit with a slight positive trend. It achieved revenue growth of 21% over the last year.
This revenue growth could really point to a brighter future. And, while modest, the earnings per share growth is noticeable. So while performance isn't amazing, we think it really does seem quite respectable. It could be important to check this free visual depiction of what analysts expect for the future.
Has Henry Schein, Inc. Been A Good Investment?
Since shareholders would have lost about 0.06% over three years, some Henry Schein, Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Stanley Bergman is paid around what is normal the leaders of comparable size companies.
The company cannot boast particularly strong per share growth. And it's hard to argue that the returns over the last three years have delighted. So suffice it to say we don't think the compensation is modest. Shareholders may want to check for free if Henry Schein insiders are buying or selling shares.
Important note: Henry Schein may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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