Yahoo Finance Does UDG Healthcare plc’s (LON:UDG) CEO Pay Compare Well With Peers?
Brendan McAtamney became the CEO of UDG Healthcare plc (LON:UDG) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for UDG Healthcare
How Does Brendan McAtamney’s Compensation Compare With Similar Sized Companies?
Our data indicates that UDG Healthcare plc is worth UK£1.5b, and total annual CEO compensation is US$2.0m. (This is based on the year to 2018). That’s below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at US$663k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €876m to €2.8b. The median total CEO compensation was €1.8m.
So Brendan McAtamney receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at UDG Healthcare, below.
Is UDG Healthcare plc Growing?
UDG Healthcare plc has reduced its earnings per share by an average of 19% a year, over the last three years. It achieved revenue growth of 7.8% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
You might want to check this free visual report on analyst forecasts for future earnings.
Has UDG Healthcare plc Been A Good Investment?
With a total shareholder return of 4.9% over three years, UDG Healthcare plc has done okay by shareholders. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
In Summary…
Brendan McAtamney is paid around what is normal the leaders of comparable size companies.
The company isn’t growing earnings per share, and nor have the total returns inspired us. We wouldn’t say the CEO pay is too high, but it’s probably fair to say that many shareholders would like to see improved performance, before any pay rise occurs. Whatever your view on compensation, you might want to check if insiders are buying or selling UDG Healthcare shares (free trial).
Or you might prefer examine intently this intuitive graph showing past 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.
