We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Advanced Medical Solutions Group plc's (LON:AMS) CEO For Now

Key Insights

• Advanced Medical Solutions Group to hold its Annual General Meeting on 30th of June
• CEO Chris Meredith's total compensation includes salary of UK£390.0k
• The overall pay is 89% above the industry average
• Over the past three years, Advanced Medical Solutions Group's EPS fell by 26% and over the past three years, the total loss to shareholders 27%

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Shareholders of Advanced Medical Solutions Group plc (LON:AMS) will have been dismayed by the negative share price return over the last three years. In addition, the company's per-share earnings growth is not looking good, despite growing revenues. The AGM coming up on 30th of June will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders might be hesitant about approving a raise at the moment.

See 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£448m, and total annual CEO compensation was reported as UK£1.1m for the year to December 2024. Notably, that's an increase of 32% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£390k.

In comparison with other companies in the British Medical Equipment industry with market capitalizations ranging from UK£298m to UK£1.2b, the reported median CEO total compensation was UK£569k. Hence, we can conclude that Chris Meredith is remunerated higher than the industry median. What's more, Chris Meredith holds UK£4.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	UK£390k	UK£379k	36%
Other	UK£684k	UK£434k	64%
Total Compensation	UK£1.1m	UK£813k	100%

Talking in terms of the industry, salary represented approximately 59% of total compensation out of all the companies we analyzed, while other remuneration made up 41% of the pie. 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.

A Look at Advanced Medical Solutions Group plc's Growth Numbers

Over the last three years, Advanced Medical Solutions Group plc has shrunk its earnings per share by 26% per year. It achieved revenue growth of 41% over the last year.

Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Advanced Medical Solutions Group plc Been A Good Investment?

With a three year total loss of 27% for the shareholders, Advanced Medical Solutions Group plc would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. In the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan is in line with their expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 3 warning signs for Advanced Medical Solutions Group that investors should be aware of in a dynamic business environment.

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.