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Is Trinity Biotech plc (NASDAQ:TRIB) Overpaying Its CEO?

Ronan O’Caoimh became the CEO of Trinity Biotech plc (NASDAQ:TRIB) in 2008. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Trinity Biotech

How Does Ronan O’Caoimh's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Trinity Biotech plc has a market cap of US$20m, and reported total annual CEO compensation of US$585k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$466k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$529k.

So Ronan O’Caoimh receives a similar amount to the median CEO pay, amongst 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, below, how CEO compensation at Trinity Biotech has changed over time.

NasdaqGS:TRIB CEO Compensation, December 17th 2019
NasdaqGS:TRIB CEO Compensation, December 17th 2019

Is Trinity Biotech plc Growing?

On average over the last three years, Trinity Biotech plc has shrunk earnings per share by 7.3% each year (measured with a line of best fit). It saw its revenue drop 3.5% over the last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.

Has Trinity Biotech plc Been A Good Investment?

Given the total loss of 86% over three years, many shareholders in Trinity Biotech plc are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Ronan O’Caoimh is paid around the same as most CEOs of similar size companies.

The company isn't growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don't think the CEO is underpaid! So you may want to check if insiders are buying Trinity Biotech shares with their own money (free access).

Important note: Trinity Biotech 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.

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.