Is AMN Healthcare Services Inc’s (NYSE:AMN) CEO Salary Justified?
Nowakowski Salka has been the CEO of AMN Healthcare Services Inc (NYSE:AMN) since 2005. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
See our latest analysis for AMN Healthcare Services
How Does Nowakowski Salka’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that AMN Healthcare Services Inc has a market cap of US$2.9b, and is paying total annual CEO compensation of US$3.9m. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$836k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$4.9m.
So Nowakowski Salka receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at AMN Healthcare Services has changed from year to year.
Is AMN Healthcare Services Inc Growing?
AMN Healthcare Services Inc has increased its earnings per share (EPS) by an average of 21% a year, over the last three years Its revenue is up 7.6% over 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?
Most shareholders would probably be pleased with AMN Healthcare Services Inc for providing a total return of 102% over three years. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
In Summary…
Nowakowski Salka is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! Shareholders may want to check for free if AMN Healthcare Services insiders are buying or selling shares.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
