Tom Patton became the CEO of CAS Medical Systems, Inc. (NASDAQ:CASM) in 2010. 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. 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.
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How Does Tom Patton’s Compensation Compare With Similar Sized Companies?
Our data indicates that CAS Medical Systems, Inc. is worth US$53m, and total annual CEO compensation is US$590k. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at US$341k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$303k.
As you can see, Tom Patton is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean CAS Medical Systems, Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at CAS Medical Systems has changed over time.
Is CAS Medical Systems, Inc. Growing?
On average over the last three years, CAS Medical Systems, Inc. has grown earnings per share (EPS) by 9.2% each year (using a line of best fit). In the last year, its revenue is up 16%.
I would argue that the modest growth in revenue is a notable positive. And the improvement in earnings per share is modest but respectable. So while performance isn’t amazing, we think it really does seem quite respectable.
It could be important to check this free visual depiction of what analysts expect for the future.
Has CAS Medical Systems, Inc. Been A Good Investment?
With a total shareholder return of 17% over three years, CAS Medical Systems, Inc. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
We compared the total CEO remuneration paid by CAS Medical Systems, Inc., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Over the last three years returns to investors have been uninspiring, and we would have liked to see stronger business growth. Considering this, we wouldn’t want to see any big pay rises, although we’d stop short of calling the CEO compensation unfair. Whatever your view on compensation, you might want to check if insiders are buying or selling CAS Medical Systems shares (free trial).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow 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 email@example.com.