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Thomas Shaw has been the CEO of Retractable Technologies, Inc. (NYSEMKT:RVP) since 1994, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Retractable Technologies.
Comparing Retractable Technologies, Inc.'s CEO Compensation With the industry
At the time of writing, our data shows that Retractable Technologies, Inc. has a market capitalization of US$252m, and reported total annual CEO compensation of US$505k for the year to December 2019. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at US$499.5k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$1.4m. This suggests that Thomas Shaw is paid below the industry median. What's more, Thomas Shaw holds US$123m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
On an industry level, around 20% of total compensation represents salary and 80% is other remuneration. Investors will find it interesting that Retractable Technologies pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Retractable Technologies, Inc.'s Growth Numbers
Retractable Technologies, Inc.'s earnings per share (EPS) grew 108% per year over the last three years. In the last year, its revenue is up 32%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Retractable Technologies, Inc. Been A Good Investment?
Boasting a total shareholder return of 1,144% over three years, Retractable Technologies, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Thomas receives almost all of their compensation through a salary. As we noted earlier, Retractable Technologies pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Since EPS growth is heading in a positive direction; many would agree with our assessment that the pay is modest. Plus, we can't ignore the impressive shareholder returns, and won't be surprised if some shareholders were to reward such excellent all-around performance with a raise.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Retractable Technologies that you should be aware of before investing.
Switching gears from Retractable Technologies, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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