Here’s What We Think About Hologic, Inc.’s (NASDAQ:HOLX) CEO Pay
Steve MacMillan has been the CEO of Hologic, Inc. (NASDAQ:HOLX) since 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. After that, we will consider the growth in the business. 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 Hologic
How Does Steve MacMillan’s Compensation Compare With Similar Sized Companies?
Our data indicates that Hologic, Inc. is worth US$12b, and total annual CEO compensation is US$11m. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$1.0m. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO compensation to be US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts – even though some are quite a bit bigger than others).
So Steve MacMillan is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Hologic, below.
Is Hologic, Inc. Growing?
Hologic, Inc. has reduced its earnings per share by an average of 2.1% a year, over the last three years. Its revenue is up 5.2% over last year.
The lack of earnings per share growth in the last three years is unimpressive. And the modest revenue growth over 12 months isn’t much comfort against the reduced earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Hologic, Inc. Been A Good Investment?
With a total shareholder return of 10% over three years, Hologic, Inc. shareholders would, in general, be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
In Summary…
Steve MacMillan is paid around what is normal the leaders of larger companies.
We’re not seeing great strides in earnings per share, and total returns were decent but not amazing in the last three years. We wouldn’t say the CEO pay is too high, but one might argue that the company should improve returns to shareholders before increasing it. Whatever your view on compensation, you might want to check if insiders are buying or selling Hologic shares (free trial).
Or you might prefer examine intently this intuitive graph showing past 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.
