Key Insights
- IDEXX Laboratories' Annual General Meeting to take place on 7th of May
- Total pay for CEO Jay Mazelsky includes US$1.12m salary
- The overall pay is comparable to the industry average
- IDEXX Laboratories' EPS grew by 7.8% over the past three years while total shareholder return over the past three years was 12%
Performance at IDEXX Laboratories, Inc. (NASDAQ:IDXX) has been reasonably good and CEO Jay Mazelsky has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 7th of May. We present our case of why we think CEO compensation looks fair.
Check out our latest analysis for IDEXX Laboratories
Comparing IDEXX Laboratories, Inc.'s CEO Compensation With The Industry
Our data indicates that IDEXX Laboratories, Inc. has a market capitalization of US$35b, and total annual CEO compensation was reported as US$13m for the year to December 2024. We note that's an increase of 13% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.1m.
On comparing similar companies in the American Medical Equipment industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$16m. This suggests that IDEXX Laboratories remunerates its CEO largely in line with the industry average. Furthermore, Jay Mazelsky directly owns US$36m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$1.1m | US$1.0m | 9% |
| Other | US$12m | US$11m | 91% |
| Total Compensation | US$13m | US$12m | 100% |
On an industry level, roughly 25% of total compensation represents salary and 75% is other remuneration. IDEXX Laboratories pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
IDEXX Laboratories, Inc.'s Growth
IDEXX Laboratories, Inc. has seen its earnings per share (EPS) increase by 7.8% a year over the past three years. In the last year, its revenue is up 6.5%.
We'd prefer higher revenue growth, but the modest improvement in EPS is good. Considering these factors we'd say performance has been pretty decent, though not amazing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has IDEXX Laboratories, Inc. Been A Good Investment?
With a total shareholder return of 12% over three years, IDEXX Laboratories, Inc. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
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. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for IDEXX Laboratories that investors should think about before committing capital to this stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.