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Should You Be Pleased About The CEO Pay At Allied Healthcare Products, Inc.'s (NASDAQ:AHPI)

Simply Wall St

Earl Refsland has been the CEO of Allied Healthcare Products, Inc. (NASDAQ:AHPI) since 1999. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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.

View 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$6.1m, and pays its CEO total annual compensation worth US$503k. (This number is for the twelve months until June 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$429k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$473k.

That means Earl Refsland receives fairly typical remuneration for the CEO of a company that size. 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 a visual representation of the CEO compensation at Allied Healthcare Products, below.

NasdaqCM:AHPI CEO Compensation, July 26th 2019

Is Allied Healthcare Products, Inc. Growing?

Allied Healthcare Products, Inc. saw earnings per share stay pretty flat over the last three years, albeit with a slight decrease, according to the line of best fit. In the last year, its revenue is down -2.8%.

The lack of earnings per share growth in the last three years is unimpressive. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

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

Allied Healthcare Products, Inc. has served shareholders reasonably well, with a total return of 19% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Earl Refsland is paid around what is normal the leaders of comparable size companies.

We're not seeing great strides in earnings per share, and total returns were decent but not amazing in the last three years. We do not think the CEO pay is a problem, but it's probably fair to say that many shareholders would like to see improved performance, before any pay rise occurs. Whatever your view on compensation, you might want to check if insiders are buying or selling Allied Healthcare Products shares (free trial).

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

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.