We Think Amedisys, Inc.'s (NASDAQ:AMED) CEO Compensation Looks Fair

The performance at Amedisys, Inc. (NASDAQ:AMED) has been quite strong recently and CEO Paul Kusserow has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 08 June 2021. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

See our latest analysis for Amedisys

Comparing Amedisys, Inc.'s CEO Compensation With the industry

Our data indicates that Amedisys, Inc. has a market capitalization of US$8.4b, and total annual CEO compensation was reported as US$6.4m for the year to December 2020. That's a notable decrease of 50% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$900k.

On comparing similar companies from the same industry with market caps ranging from US$4.0b to US$12b, we found that the median CEO total compensation was US$6.5m. This suggests that Amedisys remunerates its CEO largely in line with the industry average. Moreover, Paul Kusserow also holds US$98m worth of Amedisys stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 19% of total compensation out of all the companies we analyzed, while other remuneration made up 81% of the pie. It's interesting to note that Amedisys allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Amedisys, Inc.'s Growth

Over the past three years, Amedisys, Inc. has seen its earnings per share (EPS) grow by 70% per year. It achieved revenue growth of 6.9% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Amedisys, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Amedisys, Inc. for providing a total return of 220% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Amedisys that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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