Joe Capper became the CEO of BioTelemetry, Inc. (NASDAQ:BEAT) in 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.
How Does Joe Capper's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that BioTelemetry, Inc. has a market cap of US$1.7b, and reported total annual CEO compensation of US$3.9m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$635k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$3.9m.
That means Joe Capper receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at BioTelemetry has changed from year to year.
Is BioTelemetry, Inc. Growing?
On average over the last three years, BioTelemetry, Inc. has shrunk earnings per share by 5.3% each year (measured with a line of best fit). It achieved revenue growth of 12% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. 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 BioTelemetry, Inc. Been A Good Investment?
Boasting a total shareholder return of 107% over three years, BioTelemetry, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Joe Capper is paid around what is normal the leaders of comparable size companies.
The company isn't growing earnings per share, but shareholder returns have been strong over the last three years. So we can't see a reason to suggest the pay is inappropriate. So you may want to check if insiders are buying BioTelemetry shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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