How Much Did HEICO Corporation’s (NYSE:HEI) CEO Pocket Last Year?

In 1990 Laurans Mendelson was appointed CEO of HEICO Corporation (NYSE:HEI). This analysis aims first to contrast CEO compensation with other large 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 process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for HEICO

How Does Laurans Mendelson’s Compensation Compare With Similar Sized Companies?

According to our data, HEICO Corporation has a market capitalization of US$11b, and pays its CEO total annual compensation worth US$6.8m. (This is based on the year to October 2018). That’s a notable increase of 23% on last year. We think total compensation is more important but we note that the CEO salary is lower, at US$1.0m. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO compensation to be US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts – even though some are quite a bit bigger than others).

This would give shareholders a good impression of the company, since most large companies pay more, leaving less 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 HEICO has changed from year to year.

Is HEICO Corporation Growing?

HEICO Corporation has increased its earnings per share (EPS) by an average of 23% a year, over the last three years (using a line of best fit). It achieved revenue growth of 16% over the last year.

This demonstrates that the company has been improving recently. A good result. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to check this free visual report on analyst forecasts for future earnings.

Has HEICO Corporation Been A Good Investment?

Most shareholders would probably be pleased with HEICO Corporation for providing a total return of 212% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

It looks like HEICO Corporation pays its CEO less than the average at large companies. Since the business is growing, many would argue this suggests the pay is modest. The strong history of shareholder returns might even have some thinking that Laurans Mendelson deserves a raise!

It is relatively rare to see a modestly paid CEO when performance is so impressive. It would be even more positive if company insiders are buying shares. So you may want to check if insiders are buying HEICO shares with their own money (free access).

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.

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.