Here's Why Fisher & Paykel Healthcare Corporation Limited's (NZSE:FPH) CEO Might See A Pay Rise Soon
Key Insights
- Fisher & Paykel Healthcare's Annual General Meeting to take place on 21st of August
- Total pay for CEO Lewis Gradon includes NZ$1.84m salary
- The total compensation is 74% less than the average for the industry
- Over the past three years, Fisher & Paykel Healthcare's EPS fell by 0.5% and over the past three years, the total shareholder return was 86%
Shareholders will probably not be disappointed by the robust results at Fisher & Paykel Healthcare Corporation Limited (NZSE:FPH) recently and they will be keeping this in mind as they go into the AGM on 21st of August. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.
Check out our latest analysis for Fisher & Paykel Healthcare
How Does Total Compensation For Lewis Gradon Compare With Other Companies In The Industry?
According to our data, Fisher & Paykel Healthcare Corporation Limited has a market capitalization of NZ$22b, and paid its CEO total annual compensation worth NZ$5.8m over the year to March 2025. Notably, that's an increase of 63% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at NZ$1.8m.
In comparison with other companies in the New Zealand Medical Equipment industry with market capitalizations over NZ$13b, the reported median total CEO compensation was NZ$22m. Accordingly, Fisher & Paykel Healthcare pays its CEO under the industry median. What's more, Lewis Gradon holds NZ$21m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | NZ$1.8m | NZ$1.8m | 32% |
| Other | NZ$3.9m | NZ$1.7m | 68% |
| Total Compensation | NZ$5.8m | NZ$3.5m | 100% |
On an industry level, roughly 57% of total compensation represents salary and 43% is other remuneration. Fisher & Paykel Healthcare pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Fisher & Paykel Healthcare Corporation Limited's Growth
Earnings per share at Fisher & Paykel Healthcare Corporation Limited are much the same as they were three years ago, albeit slightly lower. In the last year, its revenue is up 16%.
The decrease in EPS could be a concern for some investors. 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 Fisher & Paykel Healthcare Corporation Limited Been A Good Investment?
We think that the total shareholder return of 86%, over three years, would leave most Fisher & Paykel Healthcare Corporation Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
The company's overall performance, while not bad, could be better. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
So you may want to check if insiders are buying Fisher & Paykel Healthcare shares with their own money (free access).
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.
Valuation is complex, but we're here to simplify it.
Discover if Fisher & Paykel Healthcare might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.