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Jeff Duchemin has been the CEO of Harvard Bioscience, Inc. (NASDAQ:HBIO) since 2013. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Jeff Duchemin’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Harvard Bioscience, Inc. has a market cap of US$142m, and is paying total annual CEO compensation of US$1.5m. (This is based on the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$527k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$299k.
As you can see, Jeff Duchemin is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Harvard Bioscience, Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Harvard Bioscience, below.
Is Harvard Bioscience, Inc. Growing?
Harvard Bioscience, Inc. has increased its earnings per share (EPS) by an average of 44% a year, over the last three years (using a line of best fit). It achieved revenue growth of 62% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.
Has Harvard Bioscience, Inc. Been A Good Investment?
Boasting a total shareholder return of 44% over three years, Harvard Bioscience, Inc. has done well by shareholders. 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.
We compared the total CEO remuneration paid by Harvard Bioscience, Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Whatever your view on compensation, you might want to check if insiders are buying or selling Harvard Bioscience shares (free trial).
Important note: Harvard Bioscience 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 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. On rare occasion, data errors may occur. Thank you for reading.