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Vivek Jain has been the CEO of ICU Medical, Inc. (NASDAQ:ICUI) since 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Vivek Jain's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that ICU Medical, Inc. has a market cap of US$4.8b, and is paying total annual CEO compensation of US$6.0m. (This number is for the twelve months until December 2018). We note that's an increase of 56% above last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$650k. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO total compensation was US$6.8m.
So Vivek Jain is paid around the average of the companies we looked at. 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 ICU Medical has changed over time.
Is ICU Medical, Inc. Growing?
Over the last three years ICU Medical, Inc. has shrunk its earnings per share by an average of 10% per year (measured with a line of best fit). Its revenue is up 8.3% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has ICU Medical, Inc. Been A Good Investment?
Boasting a total shareholder return of 121% over three years, ICU Medical, Inc. has done well by shareholders. 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.
Remuneration for Vivek Jain is close enough to the median pay for a CEO of a similar sized company .
We're not seeing great strides in earnings per share, but the company has clearly pleased some investors, given the returns over the last three years. So we doubt many are complaining about the fairly normal CEO pay. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling ICU Medical (free visualization of insider trades).
Important note: ICU Medical may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.