Yahoo Finance Here's Why IRADIMED CORPORATION's (NASDAQ:IRMD) CEO May Deserve A Raise
Key Insights
IRADIMED's Annual General Meeting to take place on 20th of June
CEO Roger Susi's total compensation includes salary of US$307.7k
The overall pay is 82% below the industry average
Over the past three years, IRADIMED's EPS grew by 160% and over the past three years, the total shareholder return was 59%
Shareholders will be pleased by the impressive results for IRADIMED CORPORATION (NASDAQ:IRMD) recently and CEO Roger Susi has played a key role. At the upcoming AGM on 20th of June, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.
See our latest analysis for IRADIMED
Comparing IRADIMED CORPORATION's CEO Compensation With The Industry
According to our data, IRADIMED CORPORATION has a market capitalization of US$550m, and paid its CEO total annual compensation worth US$643k over the year to December 2023. That's a notable increase of 9.6% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$308k.
In comparison with other companies in the American Medical Equipment industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$3.6m. In other words, IRADIMED pays its CEO lower than the industry median. What's more, Roger Susi holds US$199m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$308k | US$290k | 48% |
Other | US$335k | US$296k | 52% |
Total Compensation | US$643k | US$586k | 100% |
Talking in terms of the industry, salary represented approximately 25% of total compensation out of all the companies we analyzed, while other remuneration made up 75% of the pie. It's interesting to note that IRADIMED pays out a greater portion of remuneration through salary, compared to the industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
IRADIMED CORPORATION's Growth
Over the past three years, IRADIMED CORPORATION has seen its earnings per share (EPS) grow by 160% per year. In the last year, its revenue is up 20%.
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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has IRADIMED CORPORATION Been A Good Investment?
We think that the total shareholder return of 59%, over three years, would leave most IRADIMED CORPORATION shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for IRADIMED (of which 1 is a bit concerning!) that you should know about in order to have a holistic understanding of the stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
