In This Article:
Colin Goldschmidt is the CEO of Sonic Healthcare Limited (ASX:SHL). First, this article will compare CEO compensation with compensation at similar sized 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. This process should give us an idea about how appropriately the CEO is paid.
See 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$12b, and pays its CEO total annual compensation worth AU$5.1m. (This is based on the year to June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$2.4m. We examined companies with market caps from AU$5.7b to AU$17b, and discovered that the median CEO compensation of that group was AU$4.3m.
So Colin Goldschmidt receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Sonic Healthcare, below.
Is Sonic Healthcare Limited Growing?
Over the last three years Sonic Healthcare Limited has grown its earnings per share (EPS) by an average of 4.0% per year (using a line of best fit). It achieved revenue growth of 8.5% over the last year.
I’d prefer higher revenue growth, but it is good to see modest EPS growth. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information. You might want to check this free visual report on analyst forecasts for future earnings.
Has Sonic Healthcare Limited Been A Good Investment?
Most shareholders would probably be pleased with Sonic Healthcare Limited for providing a total return of 47% over three years. 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 similar size companies.
While the growth could be better, the shareholder returns are clearly good. So all things considered I’d venture that the CEO pay is appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Sonic Healthcare.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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.