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Robert Read has been the CEO of MedAdvisor Limited (ASX:MDR) since 2015. 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.
How Does Robert Read’s Compensation Compare With Similar Sized Companies?
According to our data, MedAdvisor Limited has a market capitalization of AU$55m, and pays its CEO total annual compensation worth AU$543k. (This is based on the year to 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$281k. We looked at a group of companies with market capitalizations under AU$281m, and the median CEO compensation was AU$363k.
As you can see, Robert Read is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean MedAdvisor Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at MedAdvisor, below.
Is MedAdvisor Limited Growing?
On average over the last three years, MedAdvisor Limited has grown earnings per share (EPS) by 18% each year (using a line of best fit). In the last year, its revenue is up 56%.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has MedAdvisor Limited Been A Good Investment?
With a three year total loss of 10%, MedAdvisor Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We examined the amount MedAdvisor Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at MedAdvisor.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 email@example.com.