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Is Amedisys, Inc. (NASDAQ:AMED) Overpaying Its CEO?

Simply Wall St

Paul Kusserow became the CEO of Amedisys, Inc. (NASDAQ:AMED) in 2014. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Amedisys

How Does Paul Kusserow's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Amedisys, Inc. has a market cap of US$5.9b, and reported total annual CEO compensation of US$4.9m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$875k. 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$4.0b to US$12b, and the median CEO total compensation was US$6.4m.

So Paul Kusserow is paid around the average of 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 Amedisys has changed from year to year.

NasdaqGS:AMED CEO Compensation, February 5th 2020

Is Amedisys, Inc. Growing?

Amedisys, Inc. has increased its earnings per share (EPS) by an average of 51% a year, over the last three years (using a line of best fit). Its revenue is up 16% over last year.

This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has Amedisys, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Amedisys, Inc. for providing a total return of 298% 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...

Paul Kusserow is paid around what is normal the leaders of comparable size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying Amedisys shares with their own money (free access).

If you want to buy a stock that is better than Amedisys, this free list of high return, low debt companies is a great place to look.

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.