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Should You Worry About Lantheus Holdings, Inc.'s (NASDAQ:LNTH) CEO Pay Cheque?

Simply Wall St

In 2015 Mary Heino was appointed CEO of Lantheus Holdings, Inc. (NASDAQ:LNTH). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Lantheus Holdings

How Does Mary Heino's Compensation Compare With Similar Sized Companies?

Our data indicates that Lantheus Holdings, Inc. is worth US$805m, and total annual CEO compensation was reported as US$3.9m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$666k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.6m.

It would therefore appear that Lantheus Holdings, Inc. pays Mary Heino more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at Lantheus Holdings, below.

NasdaqGM:LNTH CEO Compensation, January 2nd 2020

Is Lantheus Holdings, Inc. Growing?

On average over the last three years, Lantheus Holdings, Inc. has grown earnings per share (EPS) by 12% each year (using a line of best fit). It achieved revenue growth of 1.7% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.

Has Lantheus Holdings, Inc. Been A Good Investment?

Boasting a total shareholder return of 147% over three years, Lantheus Holdings, 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.

In Summary...

We compared total CEO remuneration at Lantheus Holdings, Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Lantheus Holdings (free visualization of insider trades).

Important note: Lantheus Holdings 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.