Is Wright Medical Group N.V.’s (NASDAQ:WMGI) CEO Pay Fair?

Bob Palmisano has been the CEO of Wright Medical Group N.V. (NASDAQ:WMGI) since 2011. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.

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Check out our latest analysis for Wright Medical Group

How Does Bob Palmisano’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Wright Medical Group N.V. has a market cap of US$3.9b, and is paying total annual CEO compensation of US$6.4m. (This number is for the twelve months until December 2018). We note that’s an increase of 24% above last year. While we always look at total compensation first, we note that the salary component is less, at US$957k. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.3m.

So Bob Palmisano receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at Wright Medical Group has changed over time.

NasdaqGS:WMGI CEO Compensation, May 22nd 2019
NasdaqGS:WMGI CEO Compensation, May 22nd 2019

Is Wright Medical Group N.V. Growing?

Wright Medical Group N.V. has increased its earnings per share (EPS) by an average of 33% a year, over the last three years (using a line of best fit). It achieved revenue growth of 13% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.

Has Wright Medical Group N.V. Been A Good Investment?

Most shareholders would probably be pleased with Wright Medical Group N.V. for providing a total return of 62% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary…

Remuneration for Bob Palmisano is close enough to the median pay for a CEO of a similar sized company .

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Wright Medical Group.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.