Kevin McNamara became the CEO of Chemed Corporation (NYSE:CHE) in 2001. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Kevin McNamara’s Compensation Compare With Similar Sized Companies?
According to our data, Chemed Corporation has a market capitalization of US$4.8b, and pays its CEO total annual compensation worth US$7.9m. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$1.1m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12b. The median total CEO compensation was US$6.9m.
So Kevin McNamara receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance. So this free report on the analyst consensus forecasts could help you make a master move on this stock.
You can see a visual representation of the CEO compensation at Chemed, below.
Is Chemed Corporation Growing?
On average over the last three years, Chemed Corporation has grown earnings per share (EPS) by 18% each year. Its revenue is up 6.8% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.
Has Chemed Corporation Been A Good Investment?
Boasting a total shareholder return of 98% over three years, Chemed Corporation 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.
Kevin McNamara is paid around the same as most CEOs of similar size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Chemed shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.