Key Insights

• Oceania Healthcare will host its Annual General Meeting on 27th of June

• CEO Brent Pattison's total compensation includes salary of NZ$754.7k

• The total compensation is similar to the average for the industry

• Oceania Healthcare's EPS declined by 36% over the past three years while total shareholder loss over the past three years was 62%

Shareholders will probably not be too impressed with the underwhelming results at Oceania Healthcare Limited (NZSE:OCA) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 27th of June. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

See our latest analysis for Oceania Healthcare

Comparing Oceania Healthcare Limited's CEO Compensation With The Industry

According to our data, Oceania Healthcare Limited has a market capitalization of NZ$369m, and paid its CEO total annual compensation worth NZ$1.1m over the year to March 2024. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is NZ$754.7k, represents most of the total compensation being paid.

On comparing similar companies from the New Zealander Healthcare industry with market caps ranging from NZ$163m to NZ$653m, we found that the median CEO total compensation was NZ$1.2m. From this we gather that Brent Pattison is paid around the median for CEOs in the industry. What's more, Brent Pattison holds NZ$207k worth of shares in the company in their own name.

On an industry level, around 71% of total compensation represents salary and 29% is other remuneration. There isn't a significant difference between Oceania Healthcare and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Oceania Healthcare Limited's Growth

Oceania Healthcare Limited has reduced its earnings per share by 36% a year over the last three years. In the last year, its revenue is up 7.4%.

Few shareholders would be pleased to read that EPS have declined. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.