Should You Be Pleased About The CEO Pay At Heska Corporation’s (NASDAQ:HSKA)
Kevin Wilson has been the CEO of Heska Corporation (NASDAQ:HSKA) since 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Heska
How Does Kevin Wilson’s Compensation Compare With Similar Sized Companies?
Our data indicates that Heska Corporation is worth US$761m, and total annual CEO compensation is US$4.0m. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$302k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO compensation was US$2.2m.
It would therefore appear that Heska Corporation pays Kevin Wilson more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Heska has changed over time.
Is Heska Corporation Growing?
Heska Corporation has increased its earnings per share (EPS) by an average of 2.3% a year, over the last three years Its revenue is down -2.6% over last year.
I would argue that the lack of revenue growth in the last year is less than ideal, but I’m happy with the EPS growth. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Heska Corporation Been A Good Investment?
I think that the total shareholder return of 185%, over three years, would leave most Heska Corporation shareholders smiling. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
In Summary…
We compared the total CEO remuneration paid by Heska Corporation, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. Considering this fine result for investors, we daresay the CEO compensation might be apt. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Heska (free visualization of insider trades).
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
