Yahoo Finance A Quick Analysis On Oneview Healthcare's (ASX:ONE) CEO Compensation
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James Fitter became the CEO of Oneview Healthcare PLC (ASX:ONE) in 2013, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Oneview Healthcare.
See our latest analysis for Oneview Healthcare
How Does Total Compensation For James Fitter Compare With Other Companies In The Industry?
According to our data, Oneview Healthcare PLC has a market capitalization of AU$6.9m, and paid its CEO total annual compensation worth €318k over the year to December 2019. That's a slightly lower by 6.3% over the previous year. In particular, the salary of €290.0k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the industry with market capitalizations under AU$285m, the reported median total CEO compensation was €243k. Accordingly, our analysis reveals that Oneview Healthcare PLC pays James Fitter north of the industry median. What's more, James Fitter holds AU$126k worth of shares in the company in their own name.
Component | 2019 | 2018 | Proportion (2019) |
Salary | €290k | €298k | 91% |
Other | €28k | €42k | 9% |
Total Compensation | €318k | €340k | 100% |
Speaking on an industry level, nearly 71% of total compensation represents salary, while the remainder of 29% is other remuneration. Oneview Healthcare pays out 91% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Oneview Healthcare PLC's Growth Numbers
Oneview Healthcare PLC's earnings per share (EPS) grew 30% per year over the last three years. It saw its revenue drop 13% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Oneview Healthcare PLC Been A Good Investment?
Given the total shareholder loss of 99% over three years, many shareholders in Oneview Healthcare PLC are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
As we noted earlier, Oneview Healthcare pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, we must not forget that the EPS growth has been very strong, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Although we'd stop short of calling it inappropriate, we think James is earning a very handsome sum.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 4 warning signs for Oneview Healthcare you should be aware of, and 3 of them are a bit concerning.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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. 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.
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