ResMed Inc., a key player in the American Medical Equipment industry, is set to host its Annual General Meeting (AGM) on November 16th. The upcoming AGM presents an opportunity for shareholders to address the company's performance, which has seen a total shareholder loss of 31% over the past three years. This decline comes despite the company reporting an earnings per share (EPS) growth of 9.4%.
The focus of the AGM is likely to be on CEO Mick Farrell's compensation, which totaled $14m for the year ending June 2023, marking a 19% increase from his compensation in the previous year. Farrell's pay structure is predominantly performance-based, with only 8% as salary and the remaining 92% as other forms of remuneration. This pay structure suggests that ResMed aligns CEO compensation with company performance.
Although ResMed's share price has not shown significant growth, the company's revenue has increased by 21% over the last year. Despite this revenue growth, some may question the wisdom of Farrell's substantial remuneration given the overall negative three-year return to shareholders.
Farrell himself has a vested interest in the company's success, owning US$65m worth of shares in ResMed. His salary of US$1.13m is comparable to median CEO compensation within similar-sized companies in the industry.
InvestingPro Insights
InvestingPro's real-time data on ResMed Inc. reveals a promising financial landscape that might be of interest to shareholders. As of Q1 2024, ResMed has a market cap of $21.1 billion, with a P/E ratio of 23.28, indicating a high valuation relative to its earnings. The company's revenue has also seen a notable growth of 20.71% over the last twelve months.
Moreover, ResMed's gross profit margin stands at 55.95%, suggesting efficient operations. The return on assets is 15.21%, indicating that the company is effectively using its assets to generate profits.
InvestingPro Tips for ResMed include the consistent increase in earnings per share and the fact that the company has raised its dividend for 12 consecutive years. This indicates a favorable return for investors and a stable financial footing for the company.
These insights, along with an additional 10 InvestingPro Tips for ResMed, can be found on the InvestingPro platform, providing a comprehensive analysis of the company's financial health.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.