What Can We Make Of Diagnostic Medical Systems' (EPA:DGM) CEO Compensation?

Jean-Paul Ansel is the CEO of Diagnostic Medical Systems S.A. (EPA:DGM), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Diagnostic Medical Systems

Comparing Diagnostic Medical Systems S.A.'s CEO Compensation With the industry

According to our data, Diagnostic Medical Systems S.A. has a market capitalization of €28m, and paid its CEO total annual compensation worth €190k over the year to December 2019. We note that's a decrease of 26% compared to last year. It is worth noting that the CEO compensation consists entirely of the salary, worth €190k.

For comparison, other companies in the industry with market capitalizations below €164m, reported a median total CEO compensation of €190k. From this we gather that Jean-Paul Ansel is paid around the median for CEOs in the industry. What's more, Jean-Paul Ansel holds €664k worth of shares in the company in their own name.

On an industry level, roughly 64% of total compensation represents salary and 36% is other remuneration. Speaking on a company level, Diagnostic Medical Systems prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Diagnostic Medical Systems S.A.'s Growth Numbers

Over the past three years, Diagnostic Medical Systems S.A. has seen its earnings per share (EPS) grow by 12% per year. Its revenue is up 18% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Diagnostic Medical Systems S.A. Been A Good Investment?

Diagnostic Medical Systems S.A. has served shareholders reasonably well, with a total return of 23% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

Diagnostic Medical Systems rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we touched on above, Diagnostic Medical Systems S.A. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, it's admirable that over the last three years, EPS growth for the company has been impressive, though the same can't be said for investor returns. Considering overall performance, we'd say the compensation is fair, although stockholders will want to see higher returns moving forward.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 2 warning signs for Diagnostic Medical Systems (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

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. 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.
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