Yahoo Finance Is Medlab Clinical Limited's (ASX:MDC) CEO Being Overpaid?
Sean Hall is the CEO of Medlab Clinical Limited (ASX:MDC). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Medlab Clinical
How Does Sean Hall's Compensation Compare With Similar Sized Companies?
According to our data, Medlab Clinical Limited has a market capitalization of AU$85m, and paid its CEO total annual compensation worth AU$328k over the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at AU$299k. We looked at a group of companies with market capitalizations under AU$291m, and the median CEO total compensation was AU$380k.
So Sean Hall receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Medlab Clinical has changed over time.
Is Medlab Clinical Limited Growing?
Medlab Clinical Limited has reduced its earnings per share by an average of 21% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 31% over the last year.
The reduction in earnings per share, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Medlab Clinical Limited Been A Good Investment?
Since shareholders would have lost about 54% over three years, some Medlab Clinical Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Sean Hall is paid around what is normal the leaders of comparable size companies.
We would like to see somewhat stronger per share growth. And it's hard to argue that the returns over the last three years have delighted. So suffice it to say we don't think the compensation is modest. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Medlab Clinical (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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. Thank you for reading.
