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Alistair Macdonald has been the CEO of Syneos Health, Inc. (NASDAQ:SYNH) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Alistair Macdonald’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Syneos Health, Inc. has a market cap of US$5.3b, and is paying total annual CEO compensation of US$7.6m. (This is based on the year to December 2018). We note that’s an increase of 29% above last year. We think total compensation is more important but we note that the CEO salary is lower, at US$1.0m. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO total compensation of that group was US$6.9m.
That means Alistair Macdonald 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 Syneos Health has changed from year to year.
Is Syneos Health, Inc. Growing?
Syneos Health, Inc. has reduced its earnings per share by an average of 76% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 67% over the last year.
Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching.
Has Syneos Health, Inc. Been A Good Investment?
Boasting a total shareholder return of 35% over three years, Syneos Health, 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.
Alistair Macdonald is paid around the same as most CEOs of similar size companies.
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So we can conclude that on this analysis the CEO compensation seems pretty sound. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Syneos Health.
If you want to buy a stock that is better than Syneos Health, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.