Yahoo Finance Here's What We Learned About The CEO Pay At Intelligent Ultrasound Group plc (LON:MED)
Stuart Gall has been the CEO of Intelligent Ultrasound Group plc (LON:MED) since 2009, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Intelligent Ultrasound Group.
Check out our latest analysis for Intelligent Ultrasound Group
How Does Total Compensation For Stuart Gall Compare With Other Companies In The Industry?
At the time of writing, our data shows that Intelligent Ultrasound Group plc has a market capitalization of UK£36m, and reported total annual CEO compensation of UK£246k for the year to December 2019. That's a slight decrease of 5.9% on the prior year. In particular, the salary of UK£183.3k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the industry with market capitalizations under UK£152m, the reported median total CEO compensation was UK£249k. So it looks like Intelligent Ultrasound Group compensates Stuart Gall in line with the median for the industry. Moreover, Stuart Gall also holds UK£123k worth of Intelligent Ultrasound Group stock directly under their own name.
Component | 2019 | 2018 | Proportion (2019) |
Salary | UK£183k | UK£178k | 75% |
Other | UK£62k | UK£83k | 25% |
Total Compensation | UK£246k | UK£261k | 100% |
Speaking on an industry level, nearly 75% of total compensation represents salary, while the remainder of 25% is other remuneration. Intelligent Ultrasound Group is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Intelligent Ultrasound Group plc's Growth
Over the past three years, Intelligent Ultrasound Group plc has seen its earnings per share (EPS) grow by 60% per year. It saw its revenue drop 11% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Intelligent Ultrasound Group plc Been A Good Investment?
Given the total shareholder loss of 6.3% over three years, many shareholders in Intelligent Ultrasound Group plc are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
As we noted earlier, Intelligent Ultrasound Group pays its CEO in line with similar-sized companies belonging to the same industry. At the same time, the company has logged negative shareholder returns over the last three years. However, EPS growth is positive over the same time frame. Considering positive EPS growth, we'd say compensation is fair, but shareholders may be wary of a bump in pay before the company logs positive returns.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for Intelligent Ultrasound Group (2 shouldn't be ignored!) that you should be aware of before investing here.
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.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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