In This Article:
Alumootil Cherian became the CEO of Global Health Limited (ASX:GLH) in 2002. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Global Health
How Does Alumootil Cherian’s Compensation Compare With Similar Sized Companies?
Our data indicates that Global Health Limited is worth AU$6m, and total annual CEO compensation is AU$270k. That’s less than last year. We took a group of companies with market capitalizations below AU$283m, and calculated the median CEO compensation to be AU$357k.
So Alumootil Cherian is paid around the average of 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, below, how CEO compensation at Global Health has changed over time.
Is Global Health Limited Growing?
Over the last three years Global Health Limited has shrunk its earnings per share by an average of 54% per year. In the last year, its revenue is up 15%.
Few shareholders would be pleased to read that earnings per share are lower over three years. And while it’s good to see some good revenue growth recently, the growth isn’t really fast enough for me to put aside my concerns around earnings. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Global Health Limited Been A Good Investment?
Since shareholders would have lost about 29% over three years, some Global Health Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
Alumootil Cherian is paid around what is normal the leaders of comparable size companies.
Returns have been disappointing and the company is not growing its earnings per share. Suffice it to say, we don’t think the CEO is underpaid! So you may want to check if insiders are buying Global Health Limited shares with their own money (free access).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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.