Ronnie van der Merwe became the CEO of Mediclinic International plc (LON:MDC) in 2018, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Mediclinic International pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for Mediclinic International
How Does Total Compensation For Ronnie van der Merwe Compare With Other Companies In The Industry?
According to our data, Mediclinic International plc has a market capitalization of UK£2.1b, and paid its CEO total annual compensation worth UK£601k over the year to March 2020. That's a notable decrease of 13% on last year. In particular, the salary of UK£543.0k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the same industry with market capitalizations ranging between UK£1.5b and UK£4.7b had a median total CEO compensation of UK£868k. In other words, Mediclinic International pays its CEO lower than the industry median. Moreover, Ronnie van der Merwe also holds UK£144k worth of Mediclinic International stock directly under their own name.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | UK£543k | UK£447k | 90% |
| Other | UK£58k | UK£242k | 10% |
| Total Compensation | UK£601k | UK£689k | 100% |
Speaking on an industry level, nearly 74% of total compensation represents salary, while the remainder of 26% is other remuneration. Mediclinic International pays out 90% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Mediclinic International plc's Growth Numbers
Mediclinic International plc has seen its earnings per share (EPS) increase by 1.6% a year over the past three years. In the last year, its revenue is down 2.6%.
We generally like to see a little revenue growth, but the modest EPSgrowth gives us some relief. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Mediclinic International plc Been A Good Investment?
Given the total shareholder loss of 53% over three years, many shareholders in Mediclinic International plc are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.