Yahoo Finance How Should Investors React To Advanced Medical Solutions Group plc’s (LON:AMS) CEO Pay?
Chris Meredith has been the CEO of Advanced Medical Solutions Group plc (LON:AMS) since 2011. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Advanced Medical Solutions Group
How Does Chris Meredith’s Compensation Compare With Similar Sized Companies?
According to our data, Advanced Medical Solutions Group plc has a market capitalization of UK£661m, and pays its CEO total annual compensation worth UK£1.0m. (This is based on the year to December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at UK£270k. We looked at a group of companies with market capitalizations from UK£301m to UK£1.2b, and the median CEO total compensation was UK£813k.
So Chris Meredith receives a similar amount to the median CEO pay, amongst 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 Advanced Medical Solutions Group has changed from year to year.
Is Advanced Medical Solutions Group plc Growing?
Advanced Medical Solutions Group plc has increased its earnings per share (EPS) by an average of 17% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 5.9%.
This demonstrates that the company has been improving recently. A good result. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.
Has Advanced Medical Solutions Group plc Been A Good Investment?
Most shareholders would probably be pleased with Advanced Medical Solutions Group plc for providing a total return of 72% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary…
Chris Meredith is paid around what is normal the leaders of comparable size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Advanced Medical Solutions Group shares (free trial).
If you want to buy a stock that is better than Advanced Medical Solutions Group, this free list of high return, low debt companies is a great place to look.
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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.
