Yahoo Finance Should You Worry About Primary Health Properties Plc's (LON:PHP) CEO Pay?
In 1996 Harry Hyman was appointed CEO of Primary Health Properties Plc (LON:PHP). 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. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Primary Health Properties
How Does Harry Hyman's Compensation Compare With Similar Sized Companies?
Our data indicates that Primary Health Properties Plc is worth UK£1.8b, and total annual CEO compensation was reported as UK£42k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at . Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations from UK£763m to UK£2.4b, and the median CEO total compensation was UK£1.4m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at Primary Health Properties has changed from year to year.
Is Primary Health Properties Plc Growing?
On average over the last three years, Primary Health Properties Plc has shrunk earnings per share by 27% each year (measured with a line of best fit). In the last year, its revenue is up 28%.
Investors should note that, over three years, earnings per share are down. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. You might want to check this free visual report on analyst forecasts for future earnings.
Has Primary Health Properties Plc Been A Good Investment?
Most shareholders would probably be pleased with Primary Health Properties Plc for providing a total return of 53% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
It looks like Primary Health Properties Plc pays its CEO less than similar sized companies.
Harry Hyman receives relatively low remuneration compared to similar sized companies. And the returns to shareholders were great, over the last few years. We would like to see EPS growth, but in our view it seems the CEO is modestly remunerated. So you may want to check if insiders are buying Primary Health Properties shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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. Thank you for reading.
