Is Tactile Systems Technology, Inc.'s (NASDAQ:TCMD) CEO Paid At A Competitive Rate?

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Jerry Mattys has been the CEO of Tactile Systems Technology, Inc. (NASDAQ:TCMD) since 2005. 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 process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Tactile Systems Technology

How Does Jerry Mattys's Compensation Compare With Similar Sized Companies?

According to our data, Tactile Systems Technology, Inc. has a market capitalization of US$850m, and paid its CEO total annual compensation worth US$2.0m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$502k. 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$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$2.7m.

So Jerry Mattys is paid around the average of the companies we looked at. 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.

The graphic below shows how CEO compensation at Tactile Systems Technology has changed from year to year.

NasdaqGM:TCMD CEO Compensation, October 23rd 2019
NasdaqGM:TCMD CEO Compensation, October 23rd 2019

Is Tactile Systems Technology, Inc. Growing?

On average over the last three years, Tactile Systems Technology, Inc. has grown earnings per share (EPS) by 46% each year (using a line of best fit). In the last year, its revenue is up 33%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has Tactile Systems Technology, Inc. Been A Good Investment?

Boasting a total shareholder return of 139% over three years, Tactile Systems Technology, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Jerry Mattys is paid around the same as most CEOs of similar size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if Tactile Systems Technology insiders are buying or selling shares.

If you want to buy a stock that is better than Tactile Systems Technology, this free list of high return, low debt companies is a great place to look.

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.

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