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Is Oxford Immunotec Global PLC's (NASDAQ:OXFD) CEO Being Overpaid?

Simply Wall St

Peter Wrighton-Smith has been the CEO of Oxford Immunotec Global PLC (NASDAQ:OXFD) since 2002. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Oxford Immunotec Global

How Does Peter Wrighton-Smith's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Oxford Immunotec Global PLC has a market cap of US$427m, and reported total annual CEO compensation of US$1.6m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$382k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. 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.

That means Peter Wrighton-Smith receives fairly typical remuneration for the CEO of a company that size. 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.

The graphic below shows how CEO compensation at Oxford Immunotec Global has changed from year to year.

NasdaqGM:OXFD CEO Compensation, January 20th 2020

Is Oxford Immunotec Global PLC Growing?

On average over the last three years, Oxford Immunotec Global PLC has grown earnings per share (EPS) by 81% each year (using a line of best fit). It achieved revenue growth of 25% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.

Has Oxford Immunotec Global PLC Been A Good Investment?

With a total shareholder return of 20% over three years, Oxford Immunotec Global PLC shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Peter Wrighton-Smith is paid around what is normal the leaders of comparable size companies.

We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So upon reflection one could argue that the CEO pay is quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Oxford Immunotec Global shares (free trial).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.

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.