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The CEO of Diagnostic Medical Systems S.A. (EPA:DGM) is Jean-Paul Ansel. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Diagnostic Medical Systems

How Does Jean-Paul Ansel's Compensation Compare With Similar Sized Companies?

According to our data, Diagnostic Medical Systems S.A. has a market capitalization of €18m, and pays its CEO total annual compensation worth €257k. (This figure is for the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at €238k. We took a group of companies with market capitalizations below €179m, and calculated the median CEO total compensation to be €138k.

As you can see, Jean-Paul Ansel is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Diagnostic Medical Systems S.A. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see, below, how CEO compensation at Diagnostic Medical Systems has changed over time.

Is Diagnostic Medical Systems S.A. Growing?

Over the last three years Diagnostic Medical Systems S.A. has shrunk its earnings per share by an average of 15% per year (measured with a line of best fit). Its revenue is down -22% over last year.

Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Diagnostic Medical Systems S.A. Been A Good Investment?

Given the total loss of 44% over three years, many shareholders in Diagnostic Medical Systems S.A. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We compared total CEO remuneration at Diagnostic Medical Systems S.A. 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.

Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.

Arguably worse, investors are without a positive return for the last three years. This analysis suggests to us that the CEO is paid too generously! Whatever your view on compensation, you might want to check if insiders are buying or selling Diagnostic Medical Systems shares (free trial).

Important note: Diagnostic Medical Systems may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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.