Here's What We Think About Penumbra, Inc.'s (NYSE:PEN) CEO Pay
In 2004 Adam Elsesser was appointed CEO of Penumbra, Inc. (NYSE:PEN). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Penumbra
How Does Adam Elsesser's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Penumbra, Inc. has a market cap of US$5.0b, and reported total annual CEO compensation of US$727k for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$725k. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO total compensation of that group was US$6.8m.
A first glance this seems like a real positive for shareholders, since Adam Elsesser is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Penumbra has changed over time.
Is Penumbra, Inc. Growing?
Penumbra, Inc. has increased its earnings per share (EPS) by an average of 2.7% a year, over the last three years (using a line of best fit). Its revenue is up 26% over last year.
It's great to see that revenue growth is strong. And in that context, the modest EPS improvement certainly isn't shabby. So while I'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! It could be important to check this free visual depiction of what analysts expect for the future.
Has Penumbra, Inc. Been A Good Investment?
Boasting a total shareholder return of 101% over three years, Penumbra, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
It looks like Penumbra, Inc. pays its CEO less than similar sized companies.
It's well worth noting that while Adam Elsesser is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Penumbra (free visualization of insider trades).
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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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. Thank you for reading.
