Matthijs Glastra has been the CEO of Novanta Inc. (NASDAQ:NOVT) since 2016. 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. This process should give us an idea about how appropriately the CEO is paid.
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How Does Matthijs Glastra's Compensation Compare With Similar Sized Companies?
Our data indicates that Novanta Inc. is worth US$2.9b, and total annual CEO compensation is US$4.0m. (This figure is for the year to December 2018). We note that's an increase of 9.8% above last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$581k. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$5.2m.
So Matthijs Glastra 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, below, how CEO compensation at Novanta has changed over time.
Is Novanta Inc. Growing?
Novanta Inc. has increased its earnings per share (EPS) by an average of 15% a year, over the last three years (using a line of best fit). It achieved revenue growth of 12% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Novanta Inc. Been A Good Investment?
Most shareholders would probably be pleased with Novanta Inc. for providing a total return of 467% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Matthijs Glastra is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if Novanta insiders are buying or selling shares.
If you want to buy a stock that is better than Novanta, this free list of high return, low debt companies is a great place to look.
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 email@example.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.