Scott Ward has been the CEO of Cardiovascular Systems, Inc. (NASDAQ:CSII) since 2016. 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 Scott Ward’s Compensation Compare With Similar Sized Companies?
According to our data, Cardiovascular Systems, Inc. has a market capitalization of US$1.7b, and pays its CEO total annual compensation worth US$3.4m. (This is based on the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at US$650k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$4.1m.
So Scott Ward receives a similar amount to the median CEO pay, amongst 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, below, how CEO compensation at Cardiovascular Systems has changed over time.
Is Cardiovascular Systems, Inc. Growing?
On average over the last three years, Cardiovascular Systems, Inc. has grown earnings per share (EPS) by 136% each year (using a line of best fit). Its revenue is up 14% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
Has Cardiovascular Systems, Inc. Been A Good Investment?
I think that the total shareholder return of 96%, over three years, would leave most Cardiovascular Systems, Inc. shareholders smiling. 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.
Scott Ward is paid around what is normal the leaders of comparable size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if Cardiovascular Systems insiders are buying or selling shares.
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.
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