Yahoo Finance Is Dechra Pharmaceuticals PLC’s (LON:DPH) CEO Paid Enough Relative To Peers?
In 2001 Ian Page was appointed CEO of Dechra Pharmaceuticals PLC (LON:DPH). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Dechra Pharmaceuticals
How Does Ian Page’s Compensation Compare With Similar Sized Companies?
According to our data, Dechra Pharmaceuticals PLC has a market capitalization of UK£2.2b, and pays its CEO total annual compensation worth UK£4m. That’s just a smallish increase of 3.4% on last year. When we examined a selection of companies with market caps ranging from UK£1.5b to UK£4.9b, we found the median CEO compensation was UK£2m.
As you can see, Ian Page is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Dechra Pharmaceuticals PLC is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Dechra Pharmaceuticals, below.
Is Dechra Pharmaceuticals PLC Growing?
Dechra Pharmaceuticals PLC has increased its earnings per share (EPS) by an average of 31% a year, over the last three years Its revenue is up 13% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Dechra Pharmaceuticals PLC Been A Good Investment?
Boasting a total shareholder return of 135% over three years, Dechra Pharmaceuticals PLC 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…
We compared the total CEO remuneration paid by Dechra Pharmaceuticals PLC, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. So you may want to check if insiders are buying Dechra Pharmaceuticals PLC shares with their own money (free access).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
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 editorial-team@simplywallst.com.
