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How Much is Utah Medical Products, Inc.'s (NASDAQ:UTMD) CEO Getting Paid?

In 1992 Kevin Cornwell was appointed CEO of Utah Medical Products, Inc. (NASDAQ:UTMD). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Utah Medical Products

How Does Kevin Cornwell's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Utah Medical Products, Inc. has a market cap of US$360m, and is paying total annual CEO compensation of US$501k. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$156k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.8m.

A first glance this seems like a real positive for shareholders, since Kevin Cornwell is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.

The graphic below shows how CEO compensation at Utah Medical Products has changed from year to year.

NasdaqGS:UTMD CEO Compensation, September 9th 2019
NasdaqGS:UTMD CEO Compensation, September 9th 2019

Is Utah Medical Products, Inc. Growing?

Over the last three years Utah Medical Products, Inc. has grown its earnings per share (EPS) by an average of 11% per year (using a line of best fit). In the last year, its revenue is up 1.3%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Utah Medical Products, Inc. Been A Good Investment?

I think that the total shareholder return of 60%, over three years, would leave most Utah Medical Products, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

It appears that Utah Medical Products, Inc. remunerates its CEO below most 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 Kevin Cornwell deserves a raise!

Most shareholders like to see a modestly paid CEO combined with strong performance by the company. But it is even better if company insiders are also buying shares with their own money. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Utah Medical Products (free visualization of insider trades).

Important note: Utah Medical Products 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.

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 editorial-team@simplywallst.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. Thank you for reading.