In 2001 Ian Page was appointed CEO of Dechra Pharmaceuticals PLC (LON:DPH). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Ian Page’s Compensation Compare With Similar Sized Companies?
Our data indicates that Dechra Pharmaceuticals PLC is worth UK£2.2b, and total annual CEO compensation is UK£3.5m. (This number is for the twelve months until 2018). That’s a modest increase of 3.4% on the prior year year. While we always look at total compensation first, we note that the salary component is less, at UK£500k. When we examined a selection of companies with market caps ranging from UK£1.6b to UK£5.1b, we found the median CEO compensation was UK£2.1m.
It would therefore appear that Dechra Pharmaceuticals PLC pays Ian Page more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business. So this free visual report on analyst forecasts could hold they key to an excellent investment decision.
You can see, below, how CEO compensation at Dechra Pharmaceuticals has changed over time.
Is Dechra Pharmaceuticals PLC Growing?
Over the last three years Dechra Pharmaceuticals PLC has grown its earnings per share (EPS) by an average of 31% per year. In the last year, its revenue is up 13%.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
Has Dechra Pharmaceuticals PLC Been A Good Investment?
Boasting a total shareholder return of 102% over three years, Dechra Pharmaceuticals PLC has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
We compared the total CEO remuneration paid by Dechra Pharmaceuticals PLC, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Dechra Pharmaceuticals (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.