Brad Mason has been the CEO of Orthofix Medical Inc (NASDAQ:OFIX) since 2013. 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. 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 Brad Mason’s Compensation Compare With Similar Sized Companies?
Our data indicates that Orthofix Medical Inc is worth US$1.1b, and total annual CEO compensation is US$4.7m. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$711k. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO compensation was US$2.3m.
Thus we can conclude that Brad Mason receives more in total compensation than the median of a group of companies in the same market, and of similar size to Orthofix Medical Inc. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Orthofix Medical, below.
Is Orthofix Medical Inc Growing?
Over the last three years Orthofix Medical Inc has grown its earnings per share (EPS) by an average of 62% per year. In the last year, its revenue is up 5.5%.
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.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Orthofix Medical Inc Been A Good Investment?
I think that the total shareholder return of 44%, over three years, would leave most Orthofix Medical Inc shareholders smiling. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
We examined the amount Orthofix Medical Inc pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Orthofix Medical (free visualization of insider trades).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.