Chuck Kummeth has been the CEO of Bio-Techne Corporation (NASDAQ:TECH) since 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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 Chuck Kummeth's Compensation Compare With Similar Sized Companies?
Our data indicates that Bio-Techne Corporation is worth US$7.7b, and total annual CEO compensation was reported as US$11m for the year to June 2019. We note that's an increase of 14% above last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$957k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO total compensation of that group was US$6.7m.
As you can see, Chuck Kummeth is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Bio-Techne 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 Bio-Techne has changed over time.
Is Bio-Techne Corporation Growing?
Bio-Techne Corporation has increased its earnings per share (EPS) by an average of 8.2% a year, over the last three years (using a line of best fit). It achieved revenue growth of 11% 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. You might want to check this free visual report on analyst forecasts for future earnings.
Has Bio-Techne Corporation Been A Good Investment?
Most shareholders would probably be pleased with Bio-Techne Corporation for providing a total return of 98% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We examined the amount Bio-Techne 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 generally prefer to see stronger EPS growth, there's no arguing with the strong returns to shareholders, over the last three years. Considering this fine result for investors, we daresay the CEO compensation might be apt. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Bio-Techne (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 firstname.lastname@example.org. 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.