In 1997 Colin Angle was appointed CEO of iRobot Corporation (NASDAQ:IRBT). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Colin Angle's Compensation Compare With Similar Sized Companies?
Our data indicates that iRobot Corporation is worth US$2.0b, and total annual CEO compensation is US$5.7m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$742k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$4.1m.
It would therefore appear that iRobot Corporation pays Colin Angle more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at iRobot has changed from year to year.
Is iRobot Corporation Growing?
Over the last three years iRobot Corporation has grown its earnings per share (EPS) by an average of 26% per year (using a line of best fit). In the last year, its revenue is up 18%.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has iRobot Corporation Been A Good Investment?
Most shareholders would probably be pleased with iRobot Corporation for providing a total return of 74% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
We examined the amount iRobot 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.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Shareholders may want to check for free if iRobot insiders are buying or selling shares.
Important note: iRobot 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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