In 2001 Ian Page was appointed CEO of Dechra Pharmaceuticals PLC (LON:DPH). 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Ian Page's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Dechra Pharmaceuticals PLC has a market cap of UK£2.7b, and is paying total annual CEO compensation of UK£3.5m. (This figure is for the year to June 2018). We think total compensation is more important but we note that the CEO salary is lower, at UK£500k. We examined companies with market caps from UK£1.5b to UK£4.9b, and discovered that the median CEO total compensation of that group was UK£1.8m.
It would therefore appear that Dechra Pharmaceuticals PLC pays Ian Page more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Dechra Pharmaceuticals has changed over time.
Is Dechra Pharmaceuticals PLC Growing?
Dechra Pharmaceuticals PLC has increased its earnings per share (EPS) by an average of 27% a year, over the last three years (using a line of best fit). It achieved revenue growth of 17% over the last year.
This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Dechra Pharmaceuticals PLC Been A Good Investment?
Boasting a total shareholder return of 133% over three years, Dechra Pharmaceuticals PLC has done well by shareholders. 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.
We compared total CEO remuneration at Dechra Pharmaceuticals PLC with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Dechra Pharmaceuticals (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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.