Joe Capper has been the CEO of BioTelemetry, Inc. (NASDAQ:BEAT) since 2010, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for BioTelemetry.
Comparing BioTelemetry, Inc.'s CEO Compensation With the industry
Our data indicates that BioTelemetry, Inc. has a market capitalization of US$1.8b, and total annual CEO compensation was reported as US$4.1m for the year to December 2019. That's a fairly small increase of 6.6% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$655k.
On examining similar-sized companies in the industry with market capitalizations between US$1.0b and US$3.2b, we discovered that the median CEO total compensation of that group was US$4.8m. So it looks like BioTelemetry compensates Joe Capper in line with the median for the industry. What's more, Joe Capper holds US$5.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Talking in terms of the industry, salary represented approximately 18% of total compensation out of all the companies we analyzed, while other remuneration made up 82% of the pie. BioTelemetry sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
BioTelemetry, Inc.'s Growth
Over the last three years, BioTelemetry, Inc. has shrunk its earnings per share by 28% per year. In the last year, its revenue is up 1.4%.
The decline in EPS is a bit concerning. The fairly low revenue growth fails to impress given that the EPS is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has BioTelemetry, Inc. Been A Good Investment?
Most shareholders would probably be pleased with BioTelemetry, Inc. for providing a total return of 95% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
As we noted earlier, BioTelemetry pays its CEO in line with similar-sized companies belonging to the same industry. This isn't great when you look at it against the backdrop of EPS growth, which has been negative for the past three years. On the flip side, shareholder returns have been strong over the same time, which is certainly a positive sign. We're not saying CEO compensation is too generous, but shareholders might think performance needs to be improved before paying any more.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 3 warning signs for BioTelemetry that investors should look into moving forward.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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