Kevin Cornwell became the CEO of Utah Medical Products, Inc. (NASDAQ:UTMD) in 1992. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Kevin Cornwell’s Compensation Compare With Similar Sized Companies?
According to our data, Utah Medical Products, Inc. has a market capitalization of US$317m, and pays its CEO total annual compensation worth US$501k. (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$156k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO total compensation was US$1.5m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Utah Medical Products has changed over time.
Is Utah Medical Products, Inc. Growing?
On average over the last three years, Utah Medical Products, Inc. has grown earnings per share (EPS) by 2.4% each year (using a line of best fit). Its revenue is up 1.4% over last year.
I would argue that the improvement in revenue isn’t particularly impressive, but it is good to see modest EPS growth. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information. We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Utah Medical Products, Inc. Been A Good Investment?
Boasting a total shareholder return of 41% over three years, Utah Medical Products, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It looks like Utah Medical Products, Inc. pays its CEO less than similar sized companies.
It’s well worth noting that while Kevin Cornwell is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Utah Medical Products (free visualization of insider trades).
Important note: Utah Medical Products 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.
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