Is Proto Labs, Inc.’s (NYSE:PRLB) CEO Paid Enough Relative To Peers?

In 2014 Vicki Holt was appointed CEO of Proto Labs, Inc. (NYSE:PRLB). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.

Check out our latest analysis for Proto Labs

How Does Vicki Holt’s Compensation Compare With Similar Sized Companies?

Our data indicates that Proto Labs, Inc. is worth US$2.5b, and total annual CEO compensation was reported as US$3.6m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$550k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.1m.

That means Vicki Holt receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance. You might want to check this free visual report on analyst forecasts for future earnings.

You can see a visual representation of the CEO compensation at Proto Labs, below.

NYSE:PRLB CEO Compensation, December 11th 2019
NYSE:PRLB CEO Compensation, December 11th 2019

Is Proto Labs, Inc. Growing?

On average over the last three years, Proto Labs, Inc. has grown earnings per share (EPS) by 20% each year (using a line of best fit). It achieved revenue growth of 7.6% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.

Has Proto Labs, Inc. Been A Good Investment?

I think that the total shareholder return of 82%, over three years, would leave most Proto Labs, 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.

In Summary…

Vicki Holt is paid around the same as most CEOs of similar size companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! Shareholders may want to check for free if Proto Labs insiders are buying or selling shares.

If you want to buy a stock that is better than Proto Labs, this free list of high return, low debt companies is a great place to look.

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.

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