Key Insights

• Stryker to hold its Annual General Meeting on 9th of May
• Salary of US$1.39m is part of CEO Kevin Lobo's total remuneration
• Total compensation is 50% above industry average
• Stryker's total shareholder return over the past three years was 33% while its EPS grew by 33% over the past three years

Performance at Stryker Corporation (NYSE:SYK) has been reasonably good and CEO Kevin Lobo has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 9th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

How Does Total Compensation For Kevin Lobo Compare With Other Companies In The Industry?

At the time of writing, our data shows that Stryker Corporation has a market capitalization of US$125b, and reported total annual CEO compensation of US$21m for the year to December 2023. We note that's an increase of 12% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.4m.

In comparison with other companies in the American Medical Equipment industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$14m. This suggests that Kevin Lobo is paid more than the median for the industry. Furthermore, Kevin Lobo directly owns US$33m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 26% of total compensation out of all the companies we analyzed, while other remuneration made up 74% of the pie. Stryker sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Stryker Corporation's Growth

Stryker Corporation's earnings per share (EPS) grew 33% per year over the last three years. It achieved revenue growth of 11% over the last year.

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. 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 Stryker Corporation Been A Good Investment?

With a total shareholder return of 33% over three years, Stryker Corporation shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for Stryker that investors should be aware of in a dynamic business environment.

Switching gears from Stryker, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.