Yahoo Finance Why U.S. Physical Therapy, Inc.'s (NYSE:USPH) CEO Pay Matters To You
In 2004 Chris Reading was appointed CEO of U.S. Physical Therapy, Inc. (NYSE:USPH). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for U.S. Physical Therapy
How Does Chris Reading's Compensation Compare With Similar Sized Companies?
Our data indicates that U.S. Physical Therapy, Inc. is worth US$928m, and total annual CEO compensation was reported as US$3.3m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$739k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$3.1m.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of U.S. Physical Therapy. Talking in terms of the sector, salary represented approximately 19% of total compensation out of all the companies we analysed, while other remuneration made up 81% of the pie. U.S. Physical Therapy does not set aside a larger portion of remuneration in the form of salary, maintaining the same rate as the wider market.
So Chris Reading 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 U.S. Physical Therapy has changed over time.
Is U.S. Physical Therapy, Inc. Growing?
U.S. Physical Therapy, Inc. has seen earnings per share (EPS) move positively by an average of 9.5% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 6.2%.
I would argue that the improvement in revenue isn't particularly impressive, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. It could be important to check this free visual depiction of what analysts expect for the future.
Has U.S. Physical Therapy, Inc. Been A Good Investment?
U.S. Physical Therapy, Inc. has served shareholders reasonably well, with a total return of 19% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
Remuneration for Chris Reading is close enough to the median pay for a CEO of a similar sized company .
We see room for improved growth, as well as fairly unremarkable returns over the last three years. While the CEO may not be underpaid, we don't think the pay is too generous either. Shifting gears from CEO pay for a second, we've picked out 2 warning signs for U.S. Physical Therapy that investors should be aware of in a dynamic business environment.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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