Why AMN Healthcare Services, Inc.'s (NYSE:AMN) CEO Pay Matters To You

Simply Wall St

Nowakowski Salka became the CEO of AMN Healthcare Services, Inc. (NYSE:AMN) in 2005. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for AMN Healthcare Services

How Does Nowakowski Salka's Compensation Compare With Similar Sized Companies?

According to our data, AMN Healthcare Services, Inc. has a market capitalization of US$2.8b, and paid its CEO total annual compensation worth US$5.1m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$898k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$5.1m.

That means Nowakowski Salka receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

The graphic below shows how CEO compensation at AMN Healthcare Services has changed from year to year.

NYSE:AMN CEO Compensation, December 21st 2019

Is AMN Healthcare Services, Inc. Growing?

Over the last three years AMN Healthcare Services, Inc. has grown its earnings per share (EPS) by an average of 9.0% per year (using a line of best fit). In the last year, its revenue is up 2.2%.

I'm not particularly impressed by the revenue growth, but I'm happy with the modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. It could be important to check this free visual depiction of what analysts expect for the future.

Has AMN Healthcare Services, Inc. Been A Good Investment?

Boasting a total shareholder return of 57% over three years, AMN Healthcare Services, Inc. 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...

Nowakowski Salka is paid around the same as most CEOs of similar size companies.

While the growth could be better, the shareholder returns are clearly good. So we can conclude that on this analysis the CEO compensation seems pretty sound. Shareholders may want to check for free if AMN Healthcare Services insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

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