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Kevin Lobo became the CEO of Stryker Corporation (NYSE:SYK) in 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Then we’ll look at a snap shot of the business growth. 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 Lobo’s Compensation Compare With Similar Sized Companies?
According to our data, Stryker Corporation has a market capitalization of US$77b, and pays its CEO total annual compensation worth US$14m. (This figure is for the year to December 2018). That’s actually a decrease on the year before. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$1.2m. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m. There aren’t very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
So Kevin Lobo is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Stryker has changed over time.
Is Stryker Corporation Growing?
Over the last three years Stryker Corporation has grown its earnings per share (EPS) by an average of 20% per year (using a line of best fit). Its revenue is up 9.0% over last year.
This demonstrates that the company has been improving recently. A good result. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.
Has Stryker Corporation Been A Good Investment?
Most shareholders would probably be pleased with Stryker Corporation for providing a total return of 77% over three years. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
Kevin Lobo is paid around the same as most CEOs of large companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Stryker (free visualization of insider trades).
Important note: Stryker 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 firstname.lastname@example.org. 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.