What Did OSI Systems, Inc.'s (NASDAQ:OSIS) CEO Take Home Last Year?
In 1987 Deepak Chopra was appointed CEO of OSI Systems, Inc. (NASDAQ:OSIS). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for OSI Systems
How Does Deepak Chopra's Compensation Compare With Similar Sized Companies?
Our data indicates that OSI Systems, Inc. is worth US$1.8b, and total annual CEO compensation was reported as US$6.8m for the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$975k. 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$1.0b to US$3.2b. The median total CEO compensation was US$3.9m.
As you can see, Deepak Chopra is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean OSI Systems, Inc. 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 OSI Systems has changed over time.
Is OSI Systems, Inc. Growing?
Over the last three years OSI Systems, Inc. has grown its earnings per share (EPS) by an average of 54% per year (using a line of best fit). In the last year, its revenue is up 7.5%.
This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.
Has OSI Systems, Inc. Been A Good Investment?
OSI Systems, Inc. has served shareholders reasonably well, with a total return of 26% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
We compared total CEO remuneration at OSI Systems, Inc. with the amount paid at companies with a similar market capitalization. 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. We also note that, over the same time frame, shareholder returns haven't been bad. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. So you may want to check if insiders are buying OSI Systems shares with their own money (free access).
Important note: OSI Systems 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.
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.
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. Thank you for reading.
