How Much Is Advanced Medical Solutions Group plc (LON:AMS) Paying Its CEO?

Chris Meredith has been the CEO of Advanced Medical Solutions Group plc (LON:AMS) since 2011, and this article will examine the executive's compensation 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 Advanced Medical Solutions Group

How Does Total Compensation For Chris Meredith Compare With Other Companies In The Industry?

Our data indicates that Advanced Medical Solutions Group plc has a market capitalization of UK£495m, and total annual CEO compensation was reported as UK£770k for the year to December 2019. That's a notable decrease of 14% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£300k.

On examining similar-sized companies in the industry with market capitalizations between UK£295m and UK£1.2b, we discovered that the median CEO total compensation of that group was UK£731k. This suggests that Advanced Medical Solutions Group remunerates its CEO largely in line with the industry average. Furthermore, Chris Meredith directly owns UK£3.5m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 62% of total compensation represents salary and 38% is other remuneration. In Advanced Medical Solutions Group's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Advanced Medical Solutions Group plc's Growth

Over the last three years, Advanced Medical Solutions Group plc has shrunk its earnings per share by 8.2% per year. Its revenue is down 10% over the previous year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Advanced Medical Solutions Group plc Been A Good Investment?

Since shareholders would have lost about 27% over three years, some Advanced Medical Solutions Group plc investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As we noted earlier, Advanced Medical Solutions Group pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.

Whatever your view on compensation, you might want to check if insiders are buying or selling Advanced Medical Solutions Group shares (free trial).

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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