Our Take On Advanced Medical Solutions Group plc's (LON:AMS) CEO Salary

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In 2011 Chris Meredith was appointed CEO of Advanced Medical Solutions Group plc (LON:AMS). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.

Check out our latest analysis for Advanced Medical Solutions Group

How Does Chris Meredith's Compensation Compare With Similar Sized Companies?

According to our data, Advanced Medical Solutions Group plc has a market capitalization of UK£538m, and paid its CEO total annual compensation worth UK£896k over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£278k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from UK£313m to UK£1.3b, we found the median CEO total compensation was UK£965k.

So Chris Meredith is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see, below, how CEO compensation at Advanced Medical Solutions Group has changed over time.

AIM:AMS CEO Compensation, February 29th 2020
AIM:AMS CEO Compensation, February 29th 2020

Is Advanced Medical Solutions Group plc Growing?

Over the last three years Advanced Medical Solutions Group plc has grown its earnings per share (EPS) by an average of 13% per year (using a line of best fit). Its revenue is up 5.4% over last year.

This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.

Has Advanced Medical Solutions Group plc Been A Good Investment?

Advanced Medical Solutions Group plc has generated a total shareholder return of 18% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Chris Meredith is paid around the same as most CEOs of similar size companies.

The company is growing EPS but shareholder returns have been sound but not amazing. As a result of these considerations, I would suggest the CEO pay is reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Advanced Medical Solutions Group (free visualization of insider trades).

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.

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