Does Sharps Compliance Corp.'s (NASDAQ:SMED) CEO Salary Reflect Performance?
David Tusa has been the CEO of Sharps Compliance Corp. (NASDAQ:SMED) since 2010. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Sharps Compliance
How Does David Tusa's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Sharps Compliance Corp. has a market cap of US$88m, and reported total annual CEO compensation of US$864k for the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at US$350k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$522k.
Thus we can conclude that David Tusa receives more in total compensation than the median of a group of companies in the same market, and of similar size to Sharps Compliance Corp.. 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 Sharps Compliance, below.
Is Sharps Compliance Corp. Growing?
On average over the last three years, Sharps Compliance Corp. has grown earnings per share (EPS) by 108% each year (using a line of best fit). In the last year, its revenue is up 18%.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Sharps Compliance Corp. Been A Good Investment?
Sharps Compliance Corp. has generated a total shareholder return of 18% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
We compared total CEO remuneration at Sharps Compliance Corp. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. We also think investors are doing ok, over the same time period. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Sharps Compliance.
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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