We Think Some Shareholders May Hesitate To Increase MedservRegis p.l.c.'s (MTSE:MDS) CEO Compensation

Key Insights

• MedservRegis' Annual General Meeting to take place on 29th of May
• Total pay for CEO David O’Connor includes €295.9k salary
• The overall pay is 50% above the industry average
• Over the past three years, MedservRegis' EPS grew by 119% and over the past three years, the total loss to shareholders 40%

We've discovered 4 warning signs about MedservRegis. View them for free.

The underwhelming share price performance of MedservRegis p.l.c. (MTSE:MDS) in the past three years would have disappointed many shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 29th of May. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View our latest analysis for MedservRegis

Comparing MedservRegis p.l.c.'s CEO Compensation With The Industry

At the time of writing, our data shows that MedservRegis p.l.c. has a market capitalization of €41m, and reported total annual CEO compensation of €442k for the year to December 2024. That's a notable increase of 41% on last year. In particular, the salary of €295.9k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Europe Energy Services industry with market capitalizations below €177m, we found that the median total CEO compensation was €295k. Accordingly, our analysis reveals that MedservRegis p.l.c. pays David O’Connor north of the industry median. Moreover, David O’Connor also holds €11m worth of MedservRegis stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	€296k	€249k	67%
Other	€146k	€64k	33%
Total Compensation	€442k	€313k	100%

On an industry level, roughly 63% of total compensation represents salary and 37% is other remuneration. MedservRegis is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

MedservRegis p.l.c.'s Growth

MedservRegis p.l.c.'s earnings per share (EPS) grew 119% per year over the last three years. It saw its revenue drop 5.3% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has MedservRegis p.l.c. Been A Good Investment?

Few MedservRegis p.l.c. shareholders would feel satisfied with the return of -40% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. At 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 will likely improve performance in the future.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 4 warning signs for MedservRegis you should be aware of, and 2 of them are concerning.

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.