In 2014 Vicki Holt was appointed CEO of Proto Labs, Inc. (NYSE:PRLB). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 Vicki Holt's Compensation Compare With Similar Sized Companies?
Our data indicates that Proto Labs, Inc. is worth US$2.5b, and total annual CEO compensation was reported as US$3.6m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$550k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.1m.
That means Vicki Holt 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 Proto Labs has changed over time.
Is Proto Labs, Inc. Growing?
On average over the last three years, Proto Labs, Inc. has grown earnings per share (EPS) by 20% each year (using a line of best fit). It achieved revenue growth of 7.6% over the last year.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.
Has Proto Labs, Inc. Been A Good Investment?
I think that the total shareholder return of 82%, over three years, would leave most Proto Labs, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Vicki Holt 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. Indeed, many might consider the pay rather modest, given the solid company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Proto Labs (free visualization of insider trades).
If you want to buy a stock that is better than Proto Labs, this free list of high return, low debt companies is a great place to look.
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