Does Lindblad Expeditions Holdings, Inc.'s (NASDAQ:LIND) CEO Salary Reflect Performance?
Sven-Olof Lindblad became the CEO of Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.
View our latest analysis for Lindblad Expeditions Holdings
How Does Sven-Olof Lindblad's Compensation Compare With Similar Sized Companies?
According to our data, Lindblad Expeditions Holdings, Inc. has a market capitalization of US$864m, and pays its CEO total annual compensation worth US$1.7m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at US$500k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.7m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Lindblad Expeditions Holdings has changed from year to year.
Is Lindblad Expeditions Holdings, Inc. Growing?
Over the last three years Lindblad Expeditions Holdings, Inc. has grown its earnings per share (EPS) by an average of 32% per year (using a line of best fit). It achieved revenue growth of 8.2% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has Lindblad Expeditions Holdings, Inc. Been A Good Investment?
Boasting a total shareholder return of 92% over three years, Lindblad Expeditions Holdings, Inc. has done well by shareholders. 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.
In Summary...
Lindblad Expeditions Holdings, Inc. is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggests the pay is modest. The strong history of shareholder returns might even have some thinking that Sven-Olof Lindblad deserves a raise!
It's not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Lindblad Expeditions Holdings (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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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. Thank you for reading.
