Here's Why Shareholders Will Not Be Complaining About Oneview Healthcare PLC's (ASX:ONE) CEO Pay Packet

Key Insights

• Oneview Healthcare's Annual General Meeting to take place on 27th of October
• Salary of €240.0k is part of CEO James Fitter's total remuneration
• The total compensation is similar to the average for the industry
• Oneview Healthcare's EPS grew by 51% over the past three years while total shareholder return over the past three years was 432%

It would be hard to discount the role that CEO James Fitter has played in delivering the impressive results at Oneview Healthcare PLC (ASX:ONE) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 27th of October. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

Check out our latest analysis for Oneview Healthcare

How Does Total Compensation For James Fitter Compare With Other Companies In The Industry?

At the time of writing, our data shows that Oneview Healthcare PLC has a market capitalization of AU$160m, and reported total annual CEO compensation of €448k for the year to December 2022. That's mostly flat as compared to the prior year's compensation. We note that the salary of €240.0k makes up a sizeable portion of the total compensation received by the CEO.

For comparison, other companies in the Australian Healthcare Services industry with market capitalizations below AU$317m, reported a median total CEO compensation of €347k. From this we gather that James Fitter is paid around the median for CEOs in the industry. What's more, James Fitter holds AU$3.4m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2022	2021	Proportion (2022)
Salary	€240k	€207k	54%
Other	€208k	€254k	46%
Total Compensation	€448k	€461k	100%

Speaking on an industry level, nearly 57% of total compensation represents salary, while the remainder of 43% is other remuneration. Our data reveals that Oneview Healthcare allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Oneview Healthcare PLC's Growth

Oneview Healthcare PLC has seen its earnings per share (EPS) increase by 51% a year over the past three years. In the last year, its revenue is down 8.6%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Oneview Healthcare PLC Been A Good Investment?

Boasting a total shareholder return of 432% over three years, Oneview Healthcare PLC has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. However, despite the strong growth in earnings and share price growth, the focus for shareholders would be how the company plans to steer the company towards sustainable profitability in the near future.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for Oneview Healthcare you should be aware of, and 2 of them don't sit too well with us.

Important note: Oneview Healthcare is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.