Yahoo Finance Is Georgia Healthcare Group PLC's (LON:GHG) CEO Overpaid Relative To Its Peers?
In 2015 Nick Gamkrelidze was appointed CEO of Georgia Healthcare Group PLC (LON:GHG). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Georgia Healthcare Group
How Does Nick Gamkrelidze's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Georgia Healthcare Group PLC has a market cap of UK£233m, and reported total annual CEO compensation of GEL1.0m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at GEL677k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$885k.
That means Nick Gamkrelidze receives fairly typical remuneration for the CEO of a company that size. 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 Georgia Healthcare Group, below.
Is Georgia Healthcare Group PLC Growing?
On average over the last three years, Georgia Healthcare Group PLC has shrunk earnings per share by 12% each year (measured with a line of best fit). It achieved revenue growth of 13% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. You might want to check this free visual report on analyst forecasts for future earnings.
Has Georgia Healthcare Group PLC Been A Good Investment?
With a three year total loss of 48%, Georgia Healthcare Group PLC would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Nick Gamkrelidze is paid around what is normal the leaders of comparable size companies.
The company isn't growing EPS, and shareholder returns have been disappointing. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. Shareholders may want to check for free if Georgia Healthcare Group insiders are buying or selling shares.
Important note: Georgia Healthcare Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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 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.
