Oneview Healthcare PLC's (ASX:ONE) CEO Will Probably Have Their Compensation Approved By Shareholders

Key Insights

• Oneview Healthcare to hold its Annual General Meeting on 1st of December
• Salary of €300.0k is part of CEO James Fitter's total remuneration
• The total compensation is similar to the average for the industry
• Oneview Healthcare's total shareholder return over the past three years was 122% while its EPS grew by 10% over the past three years

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We have been pretty impressed with the performance at Oneview Healthcare PLC (ASX:ONE) recently and CEO James Fitter deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 1st of December. The focus will probably be on the future company strategy as shareholders 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.

See 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$230m, and reported total annual CEO compensation of €476k for the year to December 2024. That's a notable decrease of 15% on last year. In particular, the salary of €300.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Australian Healthcare Services industry with market capitalizations below AU$310m, reported a median total CEO compensation of €369k. So it looks like Oneview Healthcare compensates James Fitter in line with the median for the industry. Furthermore, James Fitter directly owns AU$5.0m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 63% of total compensation represents salary, while the remainder of 37% is other remuneration. Although there is a difference in how total compensation is set, Oneview Healthcare more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Oneview Healthcare PLC's Growth

Oneview Healthcare PLC's earnings per share (EPS) grew 10% per year over the last three years. It achieved revenue growth of 19% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Oneview Healthcare PLC Been A Good Investment?

Boasting a total shareholder return of 122% over three years, Oneview Healthcare PLC has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Given the improved performance, shareholders may be more forgiving of CEO compensation in the upcoming AGM. Seeing that earnings growth and share price performance seems to be on the right path, the more pressing focus for shareholders at the AGM may be how the board and management plans to turn the company into a sustainably profitable one.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Oneview Healthcare that investors should think about before committing capital to this stock.

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.