Key Insights
- Intuitive Surgical will host its Annual General Meeting on 1st of May
- Total pay for CEO Gary Guthart includes US$1.01m salary
- Total compensation is similar to the industry average
- Intuitive Surgical's EPS grew by 15% over the past three years while total shareholder return over the past three years was 107%
We have been pretty impressed with the performance at Intuitive Surgical, Inc. (NASDAQ:ISRG) recently and CEO Gary Guthart deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 1st of May. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
View our latest analysis for Intuitive Surgical
Comparing Intuitive Surgical, Inc.'s CEO Compensation With The Industry
According to our data, Intuitive Surgical, Inc. has a market capitalization of US$172b, and paid its CEO total annual compensation worth US$18m over the year to December 2024. We note that's an increase of 46% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.0m.
For comparison, other companies in the American Medical Equipment industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$16m. From this we gather that Gary Guthart is paid around the median for CEOs in the industry. Moreover, Gary Guthart also holds US$619m worth of Intuitive Surgical stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$1.0m | US$955k | 6% |
| Other | US$17m | US$11m | 94% |
| Total Compensation | US$18m | US$12m | 100% |
On an industry level, roughly 25% of total compensation represents salary and 75% is other remuneration. It's interesting to note that Intuitive Surgical allocates a smaller portion of compensation to salary in comparison 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.
Intuitive Surgical, Inc.'s Growth
Intuitive Surgical, Inc.'s earnings per share (EPS) grew 15% per year over the last three years. In the last year, its revenue is up 19%.
This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Intuitive Surgical, Inc. Been A Good Investment?
We think that the total shareholder return of 107%, over three years, would leave most Intuitive Surgical, Inc. shareholders smiling. 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...
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Intuitive Surgical (free visualization of insider trades).
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.