Is Sensus Healthcare, Inc.'s (NASDAQ:SRTS) CEO Being Overpaid?
In 2010, Joe Sardano was appointed CEO of Sensus Healthcare, Inc. (NASDAQ:SRTS). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Sensus Healthcare
How Does Joe Sardano's Compensation Compare With Similar Sized Companies?
According to our data, Sensus Healthcare, Inc. has a market capitalization of US$43m, and paid its CEO total annual compensation worth US$538k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$360k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$606k.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Sensus Healthcare stands. On an industry level, roughly 23% of total compensation represents salary and 77% is other remuneration. Sensus Healthcare is paying a higher share of its remuneration through a salary in comparison to the overall industry.
That means Joe Sardano 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. You can see, below, how CEO compensation at Sensus Healthcare has changed over time.
Is Sensus Healthcare, Inc. Growing?
Sensus Healthcare, Inc. saw earnings per share stay pretty flat over the last three years, albeit with a slight positive trend. It achieved revenue growth of 3.2% over the last year.
I'd prefer higher revenue growth, but it is good to see modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. It could be important to check this free visual depiction of what analysts expect for the future.
Has Sensus Healthcare, Inc. Been A Good Investment?
With a three year total loss of 35%, Sensus Healthcare, Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Joe Sardano is paid around the same as most CEOs of similar size companies.
The company cannot boast particularly strong per share growth. And we think the shareholder returns - over three years - have been underwhelming. So many would argue that the CEO is certainly not underpaid. Looking into other areas, we've picked out 3 warning signs for Sensus Healthcare that investors should think about before committing capital to this stock.
If you want to buy a stock that is better than Sensus Healthcare, this free list of high return, low debt companies is a great place to look.
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.
