Shareholders May Not Be So Generous With Viemed Healthcare, Inc.'s (TSE:VMD) CEO Compensation And Here's Why

By
Simply Wall St
Published
June 03, 2021
TSX:VMD
Source: Shutterstock

Under the guidance of CEO Casey Hoyt, Viemed Healthcare, Inc. (TSE:VMD) has performed reasonably well recently. As shareholders go into the upcoming AGM on 10 June 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Viemed Healthcare

How Does Total Compensation For Casey Hoyt Compare With Other Companies In The Industry?

According to our data, Viemed Healthcare, Inc. has a market capitalization of CA$354m, and paid its CEO total annual compensation worth US$2.2m over the year to December 2020. That's a notable increase of 17% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$441k.

For comparison, other companies in the same industry with market capitalizations ranging between CA$121m and CA$485m had a median total CEO compensation of US$896k. This suggests that Casey Hoyt is paid more than the median for the industry. Furthermore, Casey Hoyt directly owns CA$19m worth of shares in the company, implying that they are deeply invested in the company's success.

Component20202019Proportion (2020)
Salary US$441k US$425k 20%
Other US$1.8m US$1.5m 80%
Total CompensationUS$2.2m US$1.9m100%

Talking in terms of the industry, salary represented approximately 40% of total compensation out of all the companies we analyzed, while other remuneration made up 60% of the pie. It's interesting to note that Viemed Healthcare allocates a smaller portion of compensation to salary 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.

ceo-compensation
TSX:VMD CEO Compensation June 4th 2021

A Look at Viemed Healthcare, Inc.'s Growth Numbers

Viemed Healthcare, Inc.'s earnings per share (EPS) grew 51% per year over the last three years. It achieved revenue growth of 58% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast 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 Viemed Healthcare, Inc. Been A Good Investment?

We think that the total shareholder return of 94%, over three years, would leave most Viemed Healthcare, Inc. shareholders smiling. 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...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 4 warning signs for Viemed Healthcare (1 is significant!) that you should be aware of before investing here.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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