George LeMaitre became the CEO of LeMaitre Vascular, Inc. (NASDAQ:LMAT) in 1992, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether LeMaitre Vascular pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For George LeMaitre Compare With Other Companies In The Industry?
At the time of writing, our data shows that LeMaitre Vascular, Inc. has a market capitalization of US$776m, and reported total annual CEO compensation of US$1.4m for the year to December 2019. That is, the compensation was roughly the same as last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$438k.
On comparing similar companies from the same industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$2.3m. That is to say, George LeMaitre is paid under the industry median. What's more, George LeMaitre holds US$105m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
On an industry level, roughly 21% of total compensation represents salary and 79% is other remuneration. It's interesting to note that LeMaitre Vascular pays out a greater portion of remuneration through salary, compared to the industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
LeMaitre Vascular, Inc.'s Growth
Over the past three years, LeMaitre Vascular, Inc. has seen its earnings per share (EPS) grow by 3.9% per year. It achieved revenue growth of 5.6% over the last year.
We'd prefer higher revenue growth, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has LeMaitre Vascular, Inc. Been A Good Investment?
LeMaitre Vascular, Inc. has served shareholders reasonably well, with a total return of 26% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
As previously discussed, George is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, EPS growth and shareholder returns over the past three years have not impressed us. Consequently, despite CEO compensation being reasonable by all accounts, shareholders will likely want to see more growth before they agree to a potential bump.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for LeMaitre Vascular that investors should think about before committing capital to this stock.
Important note: LeMaitre Vascular is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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