Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
In 2016 Chris Linthwaite was appointed CEO of Fluidigm Corporation (NASDAQ:FLDM). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Chris Linthwaite’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Fluidigm Corporation has a market cap of US$800m, and is paying total annual CEO compensation of US$2.6m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$554k. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO total compensation was US$2.7m.
That means Chris Linthwaite receives fairly typical remuneration for the CEO of a company that size. 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.
The graphic below shows how CEO compensation at Fluidigm has changed from year to year.
Is Fluidigm Corporation Growing?
Over the last three years Fluidigm Corporation has grown its earnings per share (EPS) by an average of 17% per year (using a line of best fit). In the last year, its revenue is up 16%.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
Has Fluidigm Corporation Been A Good Investment?
With a total shareholder return of 16% over three years, Fluidigm Corporation shareholders would, in general, be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Chris Linthwaite is paid around the same as most CEOs of similar size companies.
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So upon reflection one could argue that the CEO pay is quite reasonable. So you may want to check if insiders are buying Fluidigm shares with their own money (free access).
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 email@example.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.