Advertisement
New Zealand markets closed
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NZD/USD

    0.5973
    -0.0002 (-0.04%)
     
  • NZD/EUR

    0.5536
    +0.0003 (+0.05%)
     
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD

    2,254.80
    +16.40 (+0.73%)
     
  • NASDAQ

    18,254.69
    -26.15 (-0.14%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • Dow Jones

    39,807.37
    +47.29 (+0.12%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,369.44
    +201.37 (+0.50%)
     
  • NZD/JPY

    90.3550
    -0.0380 (-0.04%)
     

Should You Worry About PRA Health Sciences Inc’s (NASDAQ:PRAH) CEO Salary Level?

Colin Shannon became the CEO of PRA Health Sciences Inc (NASDAQ:PRAH) in 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for PRA Health Sciences

How Does Colin Shannon’s Compensation Compare With Similar Sized Companies?

According to our data, PRA Health Sciences Inc has a market capitalization of US$7.5b, and pays its CEO total annual compensation worth US$6.0m. (This is based on the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$893k. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO compensation was US$6.6m.

ADVERTISEMENT

So Colin Shannon receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at PRA Health Sciences, below.

NasdaqGS:PRAH CEO Compensation December 8th 18
NasdaqGS:PRAH CEO Compensation December 8th 18

Is PRA Health Sciences Inc Growing?

On average over the last three years, PRA Health Sciences Inc has grown earnings per share (EPS) by 17% each year. It achieved revenue growth of 23% over the last year.

This demonstrates that the company has been improving recently. A good result. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has PRA Health Sciences Inc Been A Good Investment?

Most shareholders would probably be pleased with PRA Health Sciences Inc for providing a total return of 147% over three years. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.

In Summary…

Colin Shannon is paid around the same as most CEOs of similar size companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling PRA Health Sciences 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.