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Is AMN Healthcare Services, Inc.'s (NYSE:AMN) CEO Overpaid Relative To Its Peers?

Simply Wall St

Nowakowski Salka has been the CEO of AMN Healthcare Services, Inc. (NYSE:AMN) since 2005. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for AMN Healthcare Services

How Does Nowakowski Salka's Compensation Compare With Similar Sized Companies?

According to our data, AMN Healthcare Services, Inc. has a market capitalization of US$2.6b, and pays its CEO total annual compensation worth US$5.1m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$898k. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.1m.

So Nowakowski Salka 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.

You can see, below, how CEO compensation at AMN Healthcare Services has changed over time.

NYSE:AMN CEO Compensation, September 14th 2019

Is AMN Healthcare Services, Inc. Growing?

On average over the last three years, AMN Healthcare Services, Inc. has grown earnings per share (EPS) by 12% each year (using a line of best fit). It achieved revenue growth of 1.9% over the last year.

This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.

Has AMN Healthcare Services, Inc. Been A Good Investment?

I think that the total shareholder return of 60%, over three years, would leave most AMN Healthcare Services, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Nowakowski Salka is paid around what is normal the leaders of comparable size companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if AMN Healthcare Services insiders are buying or selling shares.

Important note: AMN Healthcare Services may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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.

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. Thank you for reading.