Scott Ward became the CEO of Cardiovascular Systems, Inc. (NASDAQ:CSII) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Scott Ward’s Compensation Compare With Similar Sized Companies?
Our data indicates that Cardiovascular Systems, Inc. is worth US$1.4b, and total annual CEO compensation is US$3.4m. (This figure is for the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at US$650k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO compensation was US$3.5m.
So Scott Ward receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Cardiovascular Systems, below.
Is Cardiovascular Systems, Inc. Growing?
Cardiovascular Systems, Inc. has increased its earnings per share (EPS) by an average of 113% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 11%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Cardiovascular Systems, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Cardiovascular Systems, Inc. for providing a total return of 291% 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.
Scott Ward is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! So you may want to check if insiders are buying Cardiovascular Systems shares with their own money (free access).
Important note: Cardiovascular Systems 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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