Yahoo Finance Does Inspiration Healthcare Group plc's (LON:IHC) CEO Salary Compare Well With Others?
Neil Campbell became the CEO of Inspiration Healthcare Group plc (LON:IHC) in 2003. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.
Check out our latest analysis for Inspiration Healthcare Group
How Does Neil Campbell's Compensation Compare With Similar Sized Companies?
According to our data, Inspiration Healthcare Group plc has a market capitalization of UK£24m, and paid its CEO total annual compensation worth UK£179k over the year to January 2019. We think total compensation is more important but we note that the CEO salary is lower, at UK£147k. We took a group of companies with market capitalizations below UK£156m, and calculated the median CEO total compensation to be UK£249k.
So Neil Campbell receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Inspiration Healthcare Group, below.
Is Inspiration Healthcare Group plc Growing?
On average over the last three years, Inspiration Healthcare Group plc has grown earnings per share (EPS) by 28% each year (using a line of best fit). In the last year, its revenue is up 2.9%.
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. You might want to check this free visual report on analyst forecasts for future earnings.
Has Inspiration Healthcare Group plc Been A Good Investment?
Since shareholders would have lost about 8.1% over three years, some Inspiration Healthcare Group plc shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Neil Campbell is paid around what is normal the leaders of comparable size companies.
We'd say the company can boast of its EPS growth, but we find the returns over the last three years to be lacking. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. So you may want to check if insiders are buying Inspiration Healthcare Group shares with their own money (free access).
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.
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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. Thank you for reading.
