ResMed management check
RMD · Health Care · Health Care Equipment · CEO Michael J. Farrell
Filings as of
4 good · 2 to watch · 1 flagged, across the seven questions below.
- Watch
Have owners done well?
Trailed its chosen peers$100 invested at the start of fiscal 2022 grew to $79, against $82 for the peer group the company picked itself.
- Good
Does pay follow performance?
Pay rose and fell with returnsOver 5 years, the CEO's pay actually paid (equity valued at the share price) had a correlation of 0.85 with shareholder return. 1 means pay moved in step; below 0, the opposite way.
- Watch
What does the CEO cost owners?
1.1% of net income$16.2m of reported pay in fiscal 2026, against $1.5bn of net income.
- Good
Do they own the stock?
CEO stake ≈ 6.8 years of payThe CEO holds 484,794 shares, directly or through trusts (unvested awards not counted): about 6.8 years of pay. Light activity: no buys, $8.4m sold in six months. 8 of 8 sales ran on pre-arranged 10b5-1 plans.
- Good
Are owners being diluted?
Share count shrinkingDiluted shares changed -0.0% a year over the last three fiscal years. Stock-based pay was 1.8% of revenue in the latest year.
- Good
Is leadership stable?
7 leadership filings in 3 yearsCEO in the pay table: Mr. Michael Farrell. 7 filings under 8-K item 5.02 (officers or directors leaving or joining, or new pay arrangements) in the last 3 years.
- Flag
Are the books clean?
Red flags on file1 auditor change (8-K 4.01) since 2021.
Against the S&P 500
Each check's score (0–100) and how it compares: the share of ranked S&P 500 companies it matches or beats, and the median in Health Care.
| Check | Score | At or above | Sector median |
|---|---|---|---|
| Owner returns | 45 | 26 | |
| Pay for performance | 92 | 85 | |
| CEO cost | 48 | 44 | |
| Skin in the game | 76 | 46 | |
| Dilution | 50 | 68 | |
| Stable leadership | 90 | 70 | |
| Clean books | 30 | 100 |
Closest peers
Others in Health Care Equipment, by management score. ResMed is 33rd of 60 in its sector.
- 115ABTAbbott Laboratories75
- 149SYKStryker Corporation72
- 156ISRGIntuitive Surgical72
- 188IDXXIdexx Laboratories69
- 192BSXBoston Scientific69
- 246RVTYRevvity64
- 256GEHCGE HealthCare64
- 294RMDResMed62
- 321STESteris60
- 353BDXBecton Dickinson58
Pay versus performance
From the proxy statement filed October 1, 2026. "Actually paid" values stock awards at the share price, so it rises and falls with the stock.
| Fiscal year | CEO | CEO pay | Actually paid | Other executives (avg) | $100 became | Peers | Net income |
|---|---|---|---|---|---|---|---|
| 2026 | Mr. Michael Farrell | $16.2m | −$6.8m | $3.6m | $79 | $82 | $1.5bn |
| 2025 | Mr. Michael Farrell | $14.7m | $29.6m | $3.4m | $105 | $104 | $1.4bn |
| 2024 | Mr. Michael Farrell | $14.1m | $10.3m | $3.1m | $78 | $93 | $1.0bn |
| 2023 | Mr. Michael Farrell | $13.9m | $16.9m | $4.1m | $89 | $94 | $898.0m |
| 2022 | Mr. Michael Farrell | $11.7m | $4.4m | $3.6m | $85 | $84 | $779.0m |
The board says pay is tied most to Adjusted Net Sales. Its other key measures: Adjusted Net Operating Profit, Total Shareholder Return (absolute TSR), Relative Total Shareholder Return (relative TSR).
Insiders and the CEO's stake
Michael J. Farrell (Chairman and CEO) held 484,794 shares directly after their latest Form 4 on Oct 7, 2026, roughly $109.7m at that filing's price.
Light activity: no buys, $8.4m sold in six months. 8 of 8 sales ran on pre-arranged 10b5-1 plans.
- SoldMichael J. FarrellChairman and CEO · 10b5-1 plan$6.4mOct 7, 2026
- SoldPeter C FarrellDirector · 10b5-1 plan$2.0mSep 2, 2026
Leadership and governance on file
- Aug 17, 2026Auditor change8-K 4.01
- Aug 17, 2026Leadership change8-K 5.02
- Apr 30, 2026Leadership change8-K 5.02
- Nov 20, 2025Leadership change8-K 5.02
- Aug 18, 2025Leadership change8-K 5.02
- Aug 1, 2025Leadership change8-K 5.02
- Aug 16, 2024Leadership change8-K 5.02
- Nov 9, 2023Leadership change8-K 5.02
- Mar 30, 2023Leadership change8-K 5.02
- Jan 26, 2023Leadership change8-K 5.02
- Jul 1, 2022Leadership change8-K 5.02
- May 11, 2022Leadership change8-K 5.02
Latest shareholder vote results: Nov 20, 2025, including the say-on-pay vote.
Where the money went
Over 2021–2025: $1.8bn returned to owners in buybacks and dividends, 39% of net income, and $372.2m of pay in stock.
| Fiscal year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $3.2bn | $3.6bn | $4.2bn | $4.7bn | $5.1bn |
| Net income | $474.5m | $779.0m | $898.0m | $1.0bn | $1.4bn |
| Stock-based pay | $63.9m | $65.3m | $71.1m | $80.2m | $91.7m |
| Buybacks | — | $0 | $0 | $150.0m | $300.0m |
| Dividends | $226.7m | $245.3m | $258.3m | $282.3m | $310.9m |
| Diluted shares | 146m | 147m | 147m | 148m | 147m |
Educational only, not investment advice. Figures are as filed with the SEC: pay from the proxy's pay-versus-performance table, capital allocation from 10-K XBRL data, insider trades from Form 4s over the last six months, events from the last 5 years of filings. The peer group is the one the company chose. See the method.