Matt Monaghan became the CEO of Invacare Corporation (NYSE:IVC) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Matt Monaghan's Compensation Compare With Similar Sized Companies?
Our data indicates that Invacare Corporation is worth US$305m, and total annual CEO compensation was reported as US$5.3m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$807k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.7m.
As you can see, Matt Monaghan is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Invacare Corporation is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Invacare has changed over time.
Is Invacare Corporation Growing?
Invacare Corporation has increased its earnings per share (EPS) by an average of 4.8% a year, over the last three years (using a line of best fit). In the last year, its revenue is down 3.9%.
I would prefer it if there was revenue growth, but I'm happy with the EPS growth. 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 Invacare Corporation Been A Good Investment?
Given the total loss of 29% over three years, many shareholders in Invacare Corporation are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We examined the amount Invacare Corporation pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. Shareholders may want to check for free if Invacare insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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