Marc Casper became the CEO of Thermo Fisher Scientific Inc. (NYSE:TMO) in 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. 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 process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Thermo Fisher Scientific
How Does Marc Casper’s Compensation Compare With Similar Sized Companies?
Our data indicates that Thermo Fisher Scientific Inc. is worth US$108b, and total annual CEO compensation is US$19m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$1.5m. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts – even though some are quite a bit bigger than others).
Thus we can conclude that Marc Casper receives more in total compensation than the median of a group of large companies in the same market as Thermo Fisher Scientific Inc.. However, this doesn’t necessarily mean the pay is too high. 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 a visual representation of the CEO compensation at Thermo Fisher Scientific, below.
Is Thermo Fisher Scientific Inc. Growing?
Over the last three years Thermo Fisher Scientific Inc. has grown its earnings per share (EPS) by an average of 17% per year (using a line of best fit). Its revenue is up 7.7% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
Has Thermo Fisher Scientific Inc. Been A Good Investment?
I think that the total shareholder return of 76%, over three years, would leave most Thermo Fisher Scientific Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
We compared the total CEO remuneration paid by Thermo Fisher Scientific Inc., and compared it to remuneration at a group of other large companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Shareholders may want to check for free if Thermo Fisher Scientific insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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. Thank you for reading.