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George LeMaitre has been the CEO of LeMaitre Vascular, Inc. (NASDAQ:LMAT) since 1992. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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 George LeMaitre’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that LeMaitre Vascular, Inc. has a market cap of US$474m, and is paying total annual CEO compensation of US$889k. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$162k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO compensation was US$1.5m.
A first glance this seems like a real positive for shareholders, since George LeMaitre is paid less than the average 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.
The graphic below shows how CEO compensation at LeMaitre Vascular has changed from year to year.
Is LeMaitre Vascular, Inc. Growing?
On average over the last three years, LeMaitre Vascular, Inc. has grown earnings per share (EPS) by 35% each year (using a line of best fit). In the last year, its revenue is up 5.4%.
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. Shareholders might be interested in this free visualization of analyst forecasts.
Has LeMaitre Vascular, Inc. Been A Good Investment?
Most shareholders would probably be pleased with LeMaitre Vascular, Inc. for providing a total return of 89% over three years. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its 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. And given most shareholders are probably very happy with recent returns, you might even think 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. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at LeMaitre Vascular.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.