Should You Worry About Integra LifeSciences Holdings Corporation’s (NASDAQ:IART) CEO Pay?

Pete Arduini has been the CEO of Integra LifeSciences Holdings Corporation (NASDAQ:IART) since 2012. First, this article will compare CEO compensation with compensation at similar sized companies. 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.

Check out our latest analysis for Integra LifeSciences Holdings

How Does Pete Arduini’s Compensation Compare With Similar Sized Companies?

According to our data, Integra LifeSciences Holdings Corporation has a market capitalization of US$4.8b, and pays its CEO total annual compensation worth US$7.1m. (This figure is for the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$905k. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO total compensation was US$6.2m.

So Pete Arduini receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Integra LifeSciences Holdings has changed over time.

NasdaqGS:IART CEO Compensation, March 20th 2019
NasdaqGS:IART CEO Compensation, March 20th 2019

Is Integra LifeSciences Holdings Corporation Growing?

Over the last three years Integra LifeSciences Holdings Corporation has grown its earnings per share (EPS) by an average of 34% per year (using a line of best fit). In the last year, its revenue is up 24%.

This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has Integra LifeSciences Holdings Corporation Been A Good Investment?

I think that the total shareholder return of 74%, over three years, would leave most Integra LifeSciences Holdings Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Pete Arduini is paid around the same as most CEOs of similar size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Integra LifeSciences Holdings shares (free trial).

Important note: Integra LifeSciences 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.

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.