Is Oxford Immunotec Global PLC's (NASDAQ:OXFD) CEO Pay Justified?
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In 2002 Peter Wrighton-Smith was appointed CEO of Oxford Immunotec Global PLC (NASDAQ:OXFD). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
Check out our latest analysis for Oxford Immunotec Global
How Does Peter Wrighton-Smith's Compensation Compare With Similar Sized Companies?
According to our data, Oxford Immunotec Global PLC has a market capitalization of US$384m, and pays its CEO total annual compensation worth US$1.6m. (This figure is for the year to December 2018). That's a modest increase of 2.1% on the prior year year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$382k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.8m.
That means Peter Wrighton-Smith 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.
You can see a visual representation of the CEO compensation at Oxford Immunotec Global, below.
Is Oxford Immunotec Global PLC Growing?
Over the last three years Oxford Immunotec Global PLC has grown its earnings per share (EPS) by an average of 42% per year (using a line of best fit). In the last year, its revenue is up 40%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Shareholders might be interested in this free visualization of analyst forecasts.
Has Oxford Immunotec Global PLC Been A Good Investment?
Most shareholders would probably be pleased with Oxford Immunotec Global PLC for providing a total return of 54% over three years. 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.
In Summary...
Peter Wrighton-Smith is paid around what is normal the leaders of comparable size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! So you may want to check if insiders are buying Oxford Immunotec Global shares with their own money (free access).
If you want to buy a stock that is better than Oxford Immunotec Global, this free list of high return, low debt companies is a great place to look.
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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.
