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Is Allied Healthcare Products, Inc.'s (NASDAQ:AHPI) CEO Paid Enough Relative To Peers?

Simply Wall St

Earl Refsland became the CEO of Allied Healthcare Products, Inc. (NASDAQ:AHPI) in 1999. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Allied Healthcare Products

How Does Earl Refsland's Compensation Compare With Similar Sized Companies?

According to our data, Allied Healthcare Products, Inc. has a market capitalization of US$9.0m, and paid its CEO total annual compensation worth US$502k over the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at US$429k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$522k.

That means Earl Refsland receives fairly typical remuneration for the CEO of a company that size. 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 Allied Healthcare Products has changed over time.

NasdaqCM:AHPI CEO Compensation, February 9th 2020

Is Allied Healthcare Products, Inc. Growing?

On average over the last three years, Allied Healthcare Products, Inc. has grown earnings per share (EPS) by 3.4% each year (using a line of best fit). It saw its revenue drop 3.2% over the last year.

I would argue that the lack of revenue growth in the last year is less than ideal, but I'm happy with the EPS growth. 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. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Allied Healthcare Products, Inc. Been A Good Investment?

Allied Healthcare Products, Inc. has generated a total shareholder return of 3.2% over three years, so most shareholders wouldn't be too disappointed. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Remuneration for Earl Refsland is close enough to the median pay for a CEO of a similar sized company .

The company isn't showing particularly great growth, and shareholder turns haven't been particularly inspiring in the last few years. But we don't think the CEO compensation is a problem. So you may want to check if insiders are buying Allied Healthcare Products shares with their own money (free access).

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.