Stuart Gall has been the CEO of MedaPhor Group plc (LON:MED) since 2009. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Stuart Gall’s Compensation Compare With Similar Sized Companies?
According to our data, MedaPhor Group plc has a market capitalization of UK£12m, and pays its CEO total annual compensation worth UK£221k. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at UK£172k. We looked at a group of companies with market capitalizations under UK£157m, and the median CEO compensation was UK£247k.
So Stuart Gall is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at MedaPhor Group has changed from year to year.
Is MedaPhor Group plc Growing?
MedaPhor Group plc has reduced its earnings per share by an average of 5.0% a year, over the last three years. In the last year, its revenue is up 14%.
Sadly for shareholders, earnings per share are actually down, over three years. There’s no doubt that the silver lining is that revenue is up. But it isn’t sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has MedaPhor Group plc Been A Good Investment?
Given the total loss of 85% over three years, many shareholders in MedaPhor Group plc are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Stuart Gall is paid around the same as most CEOs of similar size companies.
The company isn’t growing EPS, and shareholder returns have been disappointing. Few would argue that it’s wise for the company to pay any more, before returns improve. Whatever your view on compensation, you might want to check if insiders are buying or selling MedaPhor Group shares (free trial).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings 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 firstname.lastname@example.org.