Shareholders Will Most Likely Find Assura Plc's (LON:AGR) CEO Compensation Acceptable

By
Simply Wall St
Published
June 28, 2021
LSE:AGR
Source: Shutterstock

Performance at Assura Plc (LON:AGR) has been reasonably good and CEO Jonathan Murphy has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 06 July 2021. We present our case of why we think CEO compensation looks fair.

See our latest analysis for Assura

Comparing Assura Plc's CEO Compensation With the industry

At the time of writing, our data shows that Assura Plc has a market capitalization of UK£2.0b, and reported total annual CEO compensation of UK£1.2m for the year to March 2021. That is, the compensation was roughly the same as last year. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£416k.

In comparison with other companies in the industry with market capitalizations ranging from UK£1.4b to UK£4.6b, the reported median CEO total compensation was UK£1.1m. From this we gather that Jonathan Murphy is paid around the median for CEOs in the industry. What's more, Jonathan Murphy holds UK£1.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20212020Proportion (2021)
Salary UK£416k UK£395k 35%
Other UK£771k UK£760k 65%
Total CompensationUK£1.2m UK£1.2m100%

Talking in terms of the industry, salary represented approximately 42% of total compensation out of all the companies we analyzed, while other remuneration made up 58% of the pie. Assura sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
LSE:AGR CEO Compensation June 29th 2021

A Look at Assura Plc's Growth Numbers

Assura Plc has seen its earnings per share (EPS) increase by 3.7% a year over the past three years. Its revenue is up 8.3% over the last year.

We're not particularly impressed by the revenue growth, but it is good to see modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. 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 Assura Plc Been A Good Investment?

Boasting a total shareholder return of 50% over three years, Assura Plc has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for Assura (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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