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Is IRadimed Corporation (NASDAQ:IRMD) Excessively Paying Its CEO?

Simply Wall St

Roger Susi became the CEO of IRadimed Corporation (NASDAQ:IRMD) in 2004. 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. 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.

View our latest analysis for IRadimed

How Does Roger Susi's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that IRadimed Corporation has a market cap of US$306m, and is paying total annual CEO compensation of US$474k. (This is based on the year to December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$268k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.6m.

A first glance this seems like a real positive for shareholders, since Roger Susi is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.

You can see a visual representation of the CEO compensation at IRadimed, below.

NasdaqCM:IRMD CEO Compensation, April 15th 2019

Is IRadimed Corporation Growing?

Over the last three years IRadimed Corporation has shrunk its earnings per share by an average of 37% per year (measured with a line of best fit). In the last year, its revenue is up 32%.

The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Shareholders might be interested in this free visualization of analyst forecasts.

Has IRadimed Corporation Been A Good Investment?

Boasting a total shareholder return of 80% over three years, IRadimed Corporation 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.

In Summary...

It appears that IRadimed Corporation remunerates its CEO below most similar sized companies.

It's well worth noting that while Roger Susi is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. Although we could see higher growth, we'd argue the remuneration is modest, based on these observations. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at IRadimed.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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 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.