Does Stereotaxis, Inc.'s (NYSEMKT:STXS) CEO Pay Matter?
David Fischel became the CEO of Stereotaxis, Inc. (NYSEMKT:STXS) in 2017. First, this article will compare CEO compensation with compensation at similar sized companies. 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.
Check out our latest analysis for Stereotaxis
How Does David Fischel's Compensation Compare With Similar Sized Companies?
Our data indicates that Stereotaxis, Inc. is worth US$283m, and total annual CEO compensation was reported as US$59k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at . Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$1.1m.
Most shareholders would consider it a positive that David Fischel takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Stereotaxis, below.
Is Stereotaxis, Inc. Growing?
Over the last three years Stereotaxis, Inc. has grown its earnings per share (EPS) by an average of 77% per year (using a line of best fit). Its revenue is down 1.2% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Stereotaxis, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Stereotaxis, Inc. for providing a total return of 532% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
It appears that Stereotaxis, Inc. remunerates its CEO below most similar sized companies.
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 David Fischel deserves a raise! It is relatively rare to see a modestly paid CEO when performance is so impressive. But it is even better if company insiders are also buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Stereotaxis.
If you want to buy a stock that is better than Stereotaxis, this free list of high return, low debt companies is a great place to look.
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.
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. Thank you for reading.
