Is Haemonetics Corporation’s (NYSE:HAE) CEO Overpaid Relative To Its Peers?
Chris Simon became the CEO of Haemonetics Corporation (NYSE:HAE) in 2016. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Haemonetics
How Does Chris Simon’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Haemonetics Corporation has a market cap of US$5.9b, and is paying total annual CEO compensation of US$8m. When we examined a selection of companies with market caps ranging from US$4.0b to US$12.0b, we found the median CEO compensation was US$7m.
That means Chris Simon receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Haemonetics has changed over time.
Is Haemonetics Corporation Growing?
Haemonetics Corporation has increased its earnings per share (EPS) by an average of 69% a year, over the last three years In the last year, its revenue is up 5.2%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Haemonetics Corporation Been A Good Investment?
Boasting a total shareholder return of 238% over three years, Haemonetics Corporation has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
Chris Simon is paid around what is normal the leaders of comparable size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Haemonetics Corporation (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 editorial-team@simplywallst.com.
