In 2010 Sam Hupert was appointed CEO of Pro Medicus Limited (ASX:PME). 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. 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 Pro Medicus

How Does Sam Hupert's Compensation Compare With Similar Sized Companies?

Our data indicates that Pro Medicus Limited is worth AU$2.4b, and total annual CEO compensation was reported as AU$508k for the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at AU$475k. We looked at a group of companies with market capitalizations from AU$1.5b to AU$4.8b, and the median CEO total compensation was AU$2.1m.

A first glance this seems like a real positive for shareholders, since Sam Hupert is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.

The graphic below shows how CEO compensation at Pro Medicus has changed from year to year.

Is Pro Medicus Limited Growing?

Over the last three years Pro Medicus Limited has grown its earnings per share (EPS) by an average of 38% per year (using a line of best fit). In the last year, its revenue is up 25%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Pro Medicus Limited Been A Good Investment?

Boasting a total shareholder return of 419% over three years, Pro Medicus Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Pro Medicus Limited is currently paying its CEO below what is normal for companies of its size.

Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Sam Hupert deserves a raise! It's not often we see shareholders do so well, and yet the CEO is paid modestly. The cherry on top would be if company insiders are buying shares with their own money. Shareholders may want to check for free if Pro Medicus insiders are buying or selling shares.

If you want to buy a stock that is better than Pro Medicus, this free list of high return, low debt companies is a great place to look.

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.

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