Steve Cutler became the CEO of ICON Public Limited Company (NASDAQ:ICLR) in 2017. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Steve Cutler's Compensation Compare With Similar Sized Companies?
Our data indicates that ICON Public Limited Company is worth US$8.6b, and total annual CEO compensation was reported as US$7.9m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$1.1m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO total compensation was US$6.8m.
So Steve Cutler receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at ICON, below.
Is ICON Public Limited Company Growing?
ICON Public Limited Company has increased its earnings per share (EPS) by an average of 12% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 16%.
This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has ICON Public Limited Company Been A Good Investment?
I think that the total shareholder return of 111%, over three years, would leave most ICON Public Limited Company shareholders smiling. 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.
Remuneration for Steve Cutler is close enough to the median pay for a CEO of a similar sized company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at ICON.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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