Yahoo Finance Is Hamilton Thorne Ltd.'s (CVE:HTL) CEO Being Overpaid?
David Wolf became the CEO of Hamilton Thorne Ltd. (CVE:HTL) in 2011. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
See our latest analysis for Hamilton Thorne
How Does David Wolf's Compensation Compare With Similar Sized Companies?
Our data indicates that Hamilton Thorne Ltd. is worth CA$132m, and total annual CEO compensation was reported as US$467k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$295k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$137k.
It would therefore appear that Hamilton Thorne Ltd. pays David Wolf more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Hamilton Thorne has changed from year to year.
Is Hamilton Thorne Ltd. Growing?
Over the last three years Hamilton Thorne Ltd. has grown its earnings per share (EPS) by an average of 28% per year (using a line of best fit). It achieved revenue growth of 11% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Hamilton Thorne Ltd. Been A Good Investment?
I think that the total shareholder return of 239%, over three years, would leave most Hamilton Thorne Ltd. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
We compared total CEO remuneration at Hamilton Thorne Ltd. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Hamilton Thorne.
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.
