In 2012 Pete Arduini was appointed CEO of Integra LifeSciences Holdings Corporation (NASDAQ:IART). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Pete Arduini's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Integra LifeSciences Holdings Corporation has a market cap of US$5.2b, and reported total annual CEO compensation of US$7.6m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$948k. 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 looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO total compensation was US$6.8m.
So Pete Arduini is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Integra LifeSciences Holdings, below.
Is Integra LifeSciences Holdings Corporation Growing?
Integra LifeSciences Holdings Corporation has increased its earnings per share (EPS) by an average of 17% a year, over the last three years (using a line of best fit). Its revenue is up 8.9% over last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.
Has Integra LifeSciences Holdings Corporation Been A Good Investment?
Most shareholders would probably be pleased with Integra LifeSciences Holdings Corporation for providing a total return of 47% over three years. 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.
Pete Arduini is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! So you may want to check if insiders are buying Integra LifeSciences Holdings shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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. Thank you for reading.