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Is Lantheus Holdings, Inc.'s (NASDAQ:LNTH) CEO Being Overpaid?

Simply Wall St

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Mary Heino has been the CEO of Lantheus Holdings, Inc. (NASDAQ:LNTH) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Lantheus Holdings

How Does Mary Heino's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Lantheus Holdings, Inc. has a market cap of US$1.1b, and is paying total annual CEO compensation of US$3.9m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$666k. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO total compensation was US$2.7m.

It would therefore appear that Lantheus Holdings, Inc. pays Mary Heino more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see, below, how CEO compensation at Lantheus Holdings has changed over time.

NasdaqGM:LNTH CEO Compensation, July 8th 2019

Is Lantheus Holdings, Inc. Growing?

Over the last three years Lantheus Holdings, Inc. has grown its earnings per share (EPS) by an average of 47% per year (using a line of best fit). Its revenue is up 4.4% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.

Has Lantheus Holdings, Inc. Been A Good Investment?

Boasting a total shareholder return of 493% over three years, Lantheus Holdings, 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.

In Summary...

We compared total CEO remuneration at Lantheus Holdings, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. So you may want to check if insiders are buying Lantheus Holdings shares with their own money (free access).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity 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 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.