How Should Investors Feel About IRadimed Corporation’s (NASDAQ:IRMD) CEO Pay?

Roger Susi has been the CEO of IRadimed Corporation (NASDAQ:IRMD) since 2004. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for IRadimed

How Does Roger Susi’s Compensation Compare With Similar Sized Companies?

Our data indicates that IRadimed Corporation is worth US$307m, and total annual CEO compensation is US$474k. (This figure is for the year to December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$268k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.5m.

Most shareholders would consider it a positive that Roger Susi takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see, below, how CEO compensation at IRadimed has changed over time.

NasdaqCM:IRMD CEO Compensation, April 3rd 2019
NasdaqCM:IRMD CEO Compensation, April 3rd 2019

Is IRadimed Corporation Growing?

IRadimed Corporation has reduced its earnings per share by an average of 37% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 32% over the last year.

As investors, we are a bit wary of companies that have lower earnings per share, over three years. On the other hand, the strong revenue growth suggests the business is growing. It’s hard to reach a conclusion about business performance right now. This may be one to watch. It could be important to check this free visual depiction of what analysts expect for the future.

Has IRadimed Corporation Been A Good Investment?

I think that the total shareholder return of 84%, over three years, would leave most IRadimed 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…

It looks like IRadimed Corporation pays its CEO less than similar sized companies.

Roger Susi is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years. Although we could see higher growth, we’d argue the remuneration is modest, based on these observations. Shareholders may want to check for free if IRadimed insiders are buying or selling shares.

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

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.