Our Take On Inspiration Healthcare Group's (LON:IHC) CEO Salary

Neil Campbell has been the CEO of Inspiration Healthcare Group plc (LON:IHC) since 2003, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Inspiration Healthcare Group.

See our latest analysis for Inspiration Healthcare Group

How Does Total Compensation For Neil Campbell Compare With Other Companies In The Industry?

Our data indicates that Inspiration Healthcare Group plc has a market capitalization of UK£58m, and total annual CEO compensation was reported as UK£247k for the year to January 2020. We note that's an increase of 38% above last year. In particular, the salary of UK£152.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below UK£147m, reported a median total CEO compensation of UK£237k. This suggests that Inspiration Healthcare Group remunerates its CEO largely in line with the industry average. Moreover, Neil Campbell also holds UK£3.9m worth of Inspiration Healthcare Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 62% of total compensation out of all the companies we analyzed, while other remuneration made up 38% of the pie. Inspiration Healthcare Group is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Inspiration Healthcare Group plc's Growth Numbers

Inspiration Healthcare Group plc's earnings per share (EPS) grew 28% per year over the last three years. Its revenue is up 48% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Inspiration Healthcare Group plc Been A Good Investment?

We think that the total shareholder return of 52%, over three years, would leave most Inspiration Healthcare Group plc shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

As previously discussed, Neil is compensated close to the median for companies of its size, and which belong to the same industry. Few would be critical of the leadership, since returns have been juicy and EPS are moving in the right direction. Indeed, many might consider that Neil is compensated rather modestly, given the solid company performance! In fact, shareholders might even think the CEO deserves a raise as a reward due to the fantastic returns generated.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 4 warning signs for Inspiration Healthcare Group (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

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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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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