Molly Hemmeter became the CEO of Landec Corporation (NASDAQ:LNDC) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. 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.
How Does Molly Hemmeter’s Compensation Compare With Similar Sized Companies?
Our data indicates that Landec Corporation is worth US$385m, and total annual CEO compensation is US$1m. That’s below the compensation, last year. 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$2m.
So Molly Hemmeter receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Landec has changed from year to year.
Is Landec Corporation Growing?
On average over the last three years, Landec Corporation has grown earnings per share (EPS) by 58% each year. It achieved revenue growth of 18% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Landec Corporation Been A Good Investment?
Landec Corporation has generated a total shareholder return of 10% over three years, so most shareholders would be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Molly Hemmeter is paid around the same as most CEOs of similar size companies.
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So considering these factors, we think the CEO pay is probably quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Landec Corporation.
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.