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In 2010 Joe Capper was appointed CEO of BioTelemetry, Inc. (NASDAQ:BEAT). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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 Joe Capper's Compensation Compare With Similar Sized Companies?
Our data indicates that BioTelemetry, Inc. is worth US$1.6b, and total annual CEO compensation is US$3.9m. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$635k. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$3.9m.
So Joe Capper is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at BioTelemetry, below.
Is BioTelemetry, Inc. Growing?
On average over the last three years, BioTelemetry, Inc. has shrunk earnings per share by 5.0% each year (measured with a line of best fit). In the last year, its revenue is up 25%.
Sadly for shareholders, earnings per share are actually down, over three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.
Has BioTelemetry, Inc. Been A Good Investment?
I think that the total shareholder return of 174%, over three years, would leave most BioTelemetry, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Remuneration for Joe Capper is close enough to the median pay for a CEO of a similar sized company .
We feel that earnings per share have been a bit disappointing, but it's nice to see positive shareholder returns over the last three years. So we can't see a reason to suggest the pay is inappropriate. So you may want to check if insiders are buying BioTelemetry shares with their own money (free access).
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.