Is Assura Plc's (LON:AGR) CEO Pay Justified?

Jonathan Murphy became the CEO of Assura Plc (LON:AGR) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 method should give us information to assess how appropriately the company pays the CEO.

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See our latest analysis for Assura

How Does Jonathan Murphy's Compensation Compare With Similar Sized Companies?

Our data indicates that Assura Plc is worth UK£1.5b, and total annual CEO compensation is UK£760k. (This is based on the year to March 2019). That's less than last year. We think total compensation is more important but we note that the CEO salary is lower, at UK£365k. We examined companies with market caps from UK£788m to UK£2.5b, and discovered that the median CEO total compensation of that group was UK£1.4m.

Most shareholders would consider it a positive that Jonathan Murphy takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see, below, how CEO compensation at Assura has changed over time.

LSE:AGR CEO Compensation, May 26th 2019
LSE:AGR CEO Compensation, May 26th 2019

Is Assura Plc Growing?

Earnings per share at Assura Plc are much the same as they were three years ago, albeit slightly lower, based on the trend. In the last year, its revenue is up 23%.

Unfortunately there is a complete lack of earnings per share improvement, 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. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. You might want to check this free visual report on analyst forecasts for future earnings.

Has Assura Plc Been A Good Investment?

With a total shareholder return of 28% over three years, Assura Plc shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Assura Plc is currently paying its CEO below what is normal for companies of its size.

The compensation paid to Jonathan Murphy is lower than is usual at similar sized companies. But the company lacks earnings per share growth, and returns to shareholders are less than stellar. We would like to see EPS growth from the business, although we wouldn't say the CEO pay is high. Shareholders may want to check for free if Assura insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.