Mike Mahoney has been the CEO of Boston Scientific Corporation (NYSE:BSX) since 2012. First, this article will compare CEO compensation with compensation at other large companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Mike Mahoney's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Boston Scientific Corporation has a market cap of US$60b, and is paying total annual CEO compensation of US$14m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$1.2m. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
So Mike Mahoney receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Boston Scientific, below.
Is Boston Scientific Corporation Growing?
On average over the last three years, Boston Scientific Corporation has grown earnings per share (EPS) by 74% each year (using a line of best fit). In the last year, its revenue is up 6.1%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings.
Has Boston Scientific Corporation Been A Good Investment?
I think that the total shareholder return of 76%, over three years, would leave most Boston Scientific Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Mike Mahoney is close enough to the median pay for a CEO of a large company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! So you may want to check if insiders are buying Boston Scientific shares with their own money (free access).
If you want to buy a stock that is better than Boston Scientific, this free list of high return, low debt companies is a great place to look.
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