George LeMaitre became the CEO of LeMaitre Vascular, Inc. (NASDAQ:LMAT) in 1992. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does George LeMaitre's Compensation Compare With Similar Sized Companies?
Our data indicates that LeMaitre Vascular, Inc. is worth US$632m, and total annual CEO compensation is US$1.4m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$438k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.7m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at LeMaitre Vascular has changed from year to year.
Is LeMaitre Vascular, Inc. Growing?
Over the last three years LeMaitre Vascular, Inc. has grown its earnings per share (EPS) by an average of 26% per year (using a line of best fit). Its revenue is up 6.3% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has LeMaitre Vascular, Inc. Been A Good Investment?
I think that the total shareholder return of 56%, over three years, would leave most LeMaitre Vascular, Inc. shareholders smiling. 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.
LeMaitre Vascular, Inc. is currently paying its CEO below what is normal for companies of its size. Considering the underlying business is growing earnings, this would suggest the pay is modest. The strong history of shareholder returns might even have some thinking that George LeMaitre deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. But it is even better if company insiders are also buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling LeMaitre Vascular shares (free trial).
Important note: LeMaitre Vascular 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.
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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.