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Dave Heinzmann became the CEO of Littelfuse, Inc. (NASDAQ:LFUS) in 2017. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Dave Heinzmann's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Littelfuse, Inc. has a market cap of US$4.4b, and is paying total annual CEO compensation of US$4.9m. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$763k. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.2m.
That means Dave Heinzmann receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Littelfuse has changed over time.
Is Littelfuse, Inc. Growing?
On average over the last three years, Littelfuse, Inc. has grown earnings per share (EPS) by 15% each year (using a line of best fit). In the last year, its revenue is up 26%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Shareholders might be interested in this free visualization of analyst forecasts.
Has Littelfuse, Inc. Been A Good Investment?
I think that the total shareholder return of 59%, over three years, would leave most Littelfuse, Inc. shareholders smiling. 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.
Remuneration for Dave Heinzmann is close enough to the median pay for a CEO of a similar sized company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Littelfuse (free visualization of insider trades).
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 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.