Joe Capper became the CEO of BioTelemetry, Inc. (NASDAQ:BEAT) in 2010. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. 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.
How Does Joe Capper’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that BioTelemetry, Inc. has a market cap of US$1.4b, and is paying total annual CEO compensation of US$3.9m. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$635k. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$4.1m.
That means Joe Capper receives fairly typical remuneration for the CEO of a company that size. 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.
The graphic below shows how CEO compensation at BioTelemetry has changed from year to year.
Is BioTelemetry, Inc. Growing?
BioTelemetry, Inc. has reduced its earnings per share by an average of 3.2% a year, over the last three years (measured with a line of best fit). Its revenue is up 14% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. There’s no doubt that the silver lining is that revenue is up. But it isn’t sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
Has BioTelemetry, Inc. Been A Good Investment?
I think that the total shareholder return of 92%, over three years, would leave most BioTelemetry, Inc. shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
Remuneration for Joe Capper is close enough to the median pay for a CEO of a similar sized company .
We’re not seeing great strides in earnings per share, but the company has clearly pleased some investors, given the returns over the last three years. So we can’t see a reason to suggest the pay is inappropriate. Shareholders may want to check for free if BioTelemetry insiders are buying or selling shares.
If you want to buy a stock that is better than BioTelemetry, this free list of high return, low debt companies is a great place to look.
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