Kevin Cornwell became the CEO of Utah Medical Products, Inc. (NASDAQ:UTMD) in 1992. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Kevin Cornwell’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Utah Medical Products, Inc. has a market cap of US$317m, and is paying total annual CEO compensation of US$501k. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$156k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO compensation was US$1.6m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Utah Medical Products, below.
Is Utah Medical Products, Inc. Growing?
Utah Medical Products, Inc. has reduced its earnings per share by an average of 5.0% a year, over the last three years. Its revenue is up 5.9% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn’t much comfort against the reduced earnings per share. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Utah Medical Products, Inc. Been A Good Investment?
I think that the total shareholder return of 48%, over three years, would leave most Utah Medical Products, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It looks like Utah Medical Products, Inc. pays its CEO less than similar sized companies.
It’s well worth noting that while Kevin Cornwell is paid less than most company leaders (at similar sized companies), there isn’t much EPS growth. Having said that, returns to shareholders have been great. Although we could see higher EPS growth, we’d argue the remuneration is not an issue, based on these observations. Whatever your view on compensation, you might want to check if insiders are buying or selling Utah Medical Products shares (free trial).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
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 email@example.com.