Yahoo Finance How Much Did Abano Healthcare Group Limited's (NZSE:ABA) CEO Pocket Last Year?
Richard Keys became the CEO of Abano Healthcare Group Limited (NZSE:ABA) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. 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 process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Abano Healthcare Group
How Does Richard Keys's Compensation Compare With Similar Sized Companies?
Our data indicates that Abano Healthcare Group Limited is worth NZ$128m, and total annual CEO compensation was reported as NZ$1.4m for the year to May 2019. Notably, that's an increase of 104% over the year before. We think total compensation is more important but we note that the CEO salary is lower, at NZ$743k. We took a group of companies with market capitalizations below NZ$315m, and calculated the median CEO total compensation to be NZ$28k.
It would therefore appear that Abano Healthcare Group Limited pays Richard Keys more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Abano Healthcare Group has changed from year to year.
Is Abano Healthcare Group Limited Growing?
On average over the last three years, Abano Healthcare Group Limited has shrunk earnings per share by 54% each year (measured with a line of best fit). It achieved revenue growth of 12% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Abano Healthcare Group Limited Been A Good Investment?
Since shareholders would have lost about 28% over three years, some Abano Healthcare Group Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared total CEO remuneration at Abano Healthcare Group Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
We think many shareholders would be underwhelmed with the business growth over the last three years. Just as bad, share price gains for investors have failed to materialize, over the same period. Notably, the CEO remuneration is actually up on last year. Some might well form the view that the CEO is paid too generously! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Abano Healthcare Group.
If you want to buy a stock that is better than Abano Healthcare Group, this free list of high return, low debt companies is a great place to look.
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.
