Should You Be Pleased About The CEO Pay At Sharps Compliance Corp.'s (NASDAQ:SMED)
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In 2010 David Tusa was appointed CEO of Sharps Compliance Corp. (NASDAQ:SMED). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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 Sharps Compliance
How Does David Tusa's Compensation Compare With Similar Sized Companies?
According to our data, Sharps Compliance Corp. has a market capitalization of US$53m, and pays its CEO total annual compensation worth US$449k. (This number is for the twelve months until June 2018). While we always look at total compensation first, we note that the salary component is less, at US$350k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$452k.
That means David Tusa receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Sharps Compliance has changed from year to year.
Is Sharps Compliance Corp. Growing?
Sharps Compliance Corp. has increased its earnings per share (EPS) by an average of 4.4% a year, over the last three years (using a line of best fit). Its revenue is up 3.6% over last year.
I'm not particularly impressed by the revenue growth, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Shareholders might be interested in this free visualization of analyst forecasts.
Has Sharps Compliance Corp. Been A Good Investment?
Given the total loss of 25% over three years, many shareholders in Sharps Compliance Corp. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Remuneration for David Tusa is close enough to the median pay for a CEO of a similar sized company .
The company cannot boast particularly strong per share growth. And we think the shareholder returns - over three years - have been underwhelming. So suffice it to say we don't think the compensation is modest. So you may want to check if insiders are buying Sharps Compliance shares with their own money (free access).
Important note: Sharps Compliance 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.
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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.
