In 2006 Mike Rice was appointed CEO of BioLife Solutions, Inc. (NASDAQ:BLFS). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Mike Rice's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that BioLife Solutions, Inc. has a market cap of US$334m, and reported total annual CEO compensation of US$691k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$450k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.7m.
Most shareholders would consider it a positive that Mike Rice takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at BioLife Solutions has changed over time.
Is BioLife Solutions, Inc. Growing?
Over the last three years BioLife Solutions, Inc. has grown its earnings per share (EPS) by an average of 113% per year (using a line of best fit). Its revenue is up 41% over last year.
This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.
Has BioLife Solutions, Inc. Been A Good Investment?
I think that the total shareholder return of 914%, over three years, would leave most BioLife Solutions, 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.
It looks like BioLife Solutions, Inc. pays its CEO less than similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Mike Rice deserves a raise! It's not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling BioLife Solutions (free visualization of insider trades).
If you want to buy a stock that is better than BioLife Solutions, this free list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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. Thank you for reading.