The CEO of Sonic Healthcare Limited (ASX:SHL) is Colin Goldschmidt. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. 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 Sonic Healthcare

How Does Colin Goldschmidt's Compensation Compare With Similar Sized Companies?

According to our data, Sonic Healthcare Limited has a market capitalization of AU$15b, and paid its CEO total annual compensation worth AU$5.5m over the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at AU$2.4m. When we examined a group of companies with market caps over AU$12b, we found that their median CEO total compensation was AU$5.6m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.

So Colin Goldschmidt receives a similar amount to the median CEO pay, amongst 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 a visual representation of the CEO compensation at Sonic Healthcare, below.

Is Sonic Healthcare Limited Growing?

On average over the last three years, Sonic Healthcare Limited has grown earnings per share (EPS) by 2.8% each year (using a line of best fit). In the last year, its revenue is up 11%.

I think the revenue growth is good. And the modest growth in earnings per share isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. It could be important to check this free visual depiction of what analysts expect for the future.

Has Sonic Healthcare Limited Been A Good Investment?

I think that the total shareholder return of 63%, over three years, would leave most Sonic Healthcare Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Colin Goldschmidt is paid around the same as most CEOs of large companies.

The company isn't showing particularly great growth, but shareholder returns have been pleasing. So we can conclude that on this analysis the CEO compensation seems pretty sound. Whatever your view on compensation, you might want to check if insiders are buying or selling Sonic Healthcare shares (free trial).