In 2017 Dave Demski was appointed CEO of Globus Medical, Inc. (NYSE:GMED). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Dave Demski’s Compensation Compare With Similar Sized Companies?
According to our data, Globus Medical, Inc. has a market capitalization of US$5.6b, and paid its CEO total annual compensation worth US$3.4m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$456k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO total compensation of that group was US$6.3m.
Most shareholders would consider it a positive that Dave Demski takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Globus Medical has changed from year to year.
Is Globus Medical, Inc. Growing?
Globus Medical, Inc. has increased its earnings per share (EPS) by an average of 13% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 11%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Globus Medical, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Globus Medical, Inc. for providing a total return of 102% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Globus Medical, Inc. is currently paying its CEO below what is normal for companies of its size.
Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Dave Demski deserves a raise! It’s not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Globus Medical (free visualization of insider trades).
If you want to buy a stock that is better than Globus Medical, this free list of high return, low debt companies is a great place to look.
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.
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. Thank you for reading.
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