How Much Is AngioDynamics' (NASDAQ:ANGO) CEO Getting Paid?

Jim Clemmer became the CEO of AngioDynamics, Inc. (NASDAQ:ANGO) in 2016, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for AngioDynamics.

View our latest analysis for AngioDynamics

How Does Total Compensation For Jim Clemmer Compare With Other Companies In The Industry?

At the time of writing, our data shows that AngioDynamics, Inc. has a market capitalization of US$765m, and reported total annual CEO compensation of US$3.1m for the year to May 2020. That's a modest increase of 3.8% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$716k.

On comparing similar companies from the same industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$2.4m. So it looks like AngioDynamics compensates Jim Clemmer in line with the median for the industry. What's more, Jim Clemmer holds US$3.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 23% of total compensation represents salary, while the remainder of 77% is other remuneration. There isn't a significant difference between AngioDynamics and the broader market, in terms of salary allocation in the overall compensation package. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at AngioDynamics, Inc.'s Growth Numbers

AngioDynamics, Inc. has reduced its earnings per share by 111% a year over the last three years. Revenue was pretty flat on last year.

The decline in EPS is a bit concerning. And the flat revenue is seriously uninspiring. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has AngioDynamics, Inc. Been A Good Investment?

AngioDynamics, Inc. has generated a total shareholder return of 19% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

As we noted earlier, AngioDynamics pays its CEO in line with similar-sized companies belonging to the same industry. AngioDynamics has had a poor showing when it comes to EPS growth, and it's tough to say that shareholder returns have done much to excite us. This doesn't compare well with CEO compensation, which is close to the industry median. We wouldn't go as far as saying CEO compensation is inappropriate, but we don't think the executive is underpaid.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 3 warning signs for AngioDynamics that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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. 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.

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