Here's Why Shareholders Will Not Be Complaining About Vitura Health Limited's (ASX:VIT) CEO Pay Packet

Key Insights

• Vitura Health to hold its Annual General Meeting on 27th of November
• CEO Rodney Cocks' total compensation includes salary of AU$320.0k
• The overall pay is comparable to the industry average
• Vitura Health's EPS grew by 114% over the past three years while total shareholder return over the past three years was 260%

We have been pretty impressed with the performance at Vitura Health Limited (ASX:VIT) recently and CEO Rodney Cocks deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 27th of November. 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. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for Vitura Health

How Does Total Compensation For Rodney Cocks Compare With Other Companies In The Industry?

Our data indicates that Vitura Health Limited has a market capitalization of AU$181m, and total annual CEO compensation was reported as AU$697k for the year to June 2023. That's a notable decrease of 13% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at AU$320k.

On comparing similar-sized companies in the Australian Pharmaceuticals industry with market capitalizations below AU$305m, we found that the median total CEO compensation was AU$647k. So it looks like Vitura Health compensates Rodney Cocks in line with the median for the industry. Furthermore, Rodney Cocks directly owns AU$6.6m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	AU$320k	AU$307k	46%
Other	AU$377k	AU$494k	54%
Total Compensation	AU$697k	AU$801k	100%

Talking in terms of the industry, salary represented approximately 61% of total compensation out of all the companies we analyzed, while other remuneration made up 39% of the pie. In Vitura Health's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Vitura Health Limited's Growth

Vitura Health Limited's earnings per share (EPS) grew 114% per year over the last three years. It achieved revenue growth of 75% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Vitura Health Limited Been A Good Investment?

Boasting a total shareholder return of 260% over three years, Vitura Health Limited 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 the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 4 warning signs for Vitura Health you should be aware of, and 1 of them makes us a bit uncomfortable.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.