Yahoo Finance Does ICU Medical, Inc.'s (NASDAQ:ICUI) CEO Pay Reflect Performance?
Vivek Jain has been the CEO of ICU Medical, Inc. (NASDAQ:ICUI) since 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for ICU Medical
How Does Vivek Jain's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that ICU Medical, Inc. has a market cap of US$3.9b, and reported total annual CEO compensation of US$6.0m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$650k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$4.9m.
So Vivek Jain receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at ICU Medical has changed from year to year.
Is ICU Medical, Inc. Growing?
Over the last three years ICU Medical, Inc. has shrunk its earnings per share by an average of 14% per year (measured with a line of best fit). Its revenue is down 9.7% over last year.
Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has ICU Medical, Inc. Been A Good Investment?
Boasting a total shareholder return of 43% over three years, ICU Medical, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Vivek Jain is paid around what is normal the leaders of comparable size companies.
The company isn't growing earnings per share, but shareholder returns have been strong over the last three years. So we can't see a reason to suggest the pay is inappropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at ICU Medical.
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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