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Jim Clemmer has been the CEO of AngioDynamics, Inc. (NASDAQ:ANGO) since 2016. First, this article will compare CEO compensation with compensation at similar sized 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Jim Clemmer's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that AngioDynamics, Inc. has a market cap of US$763m, and is paying total annual CEO compensation of US$2.7m. (This is based on the year to June 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$643k. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$2.7m.
So Jim Clemmer is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at AngioDynamics has changed from year to year.
Is AngioDynamics, Inc. Growing?
On average over the last three years, AngioDynamics, Inc. has grown earnings per share (EPS) by 99% each year (using a line of best fit). It achieved revenue growth of 2.5% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.
Has AngioDynamics, Inc. Been A Good Investment?
Boasting a total shareholder return of 41% over three years, AngioDynamics, 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.
Jim Clemmer is paid around the same as most CEOs of similar size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if AngioDynamics insiders are buying or selling shares.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.