Yahoo Finance What Did Vectus Biosystems Limited's (ASX:VBS) CEO Take Home Last Year?
The CEO of Vectus Biosystems Limited (ASX:VBS) is Karen Duggan. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Vectus Biosystems
How Does Karen Duggan's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Vectus Biosystems Limited has a market cap of AU$12m, and reported total annual CEO compensation of AU$253k for the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$183k. We took a group of companies with market capitalizations below AU$344m, and calculated the median CEO total compensation to be AU$401k.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Vectus Biosystems. Talking in terms of the sector, salary represented approximately 63% of total compensation out of all the companies we analysed, while other remuneration made up 37% of the pie. Our data reveals that Vectus Biosystems allocates salary in line with the wider market.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion. You can see a visual representation of the CEO compensation at Vectus Biosystems, below.
Is Vectus Biosystems Limited Growing?
Vectus Biosystems Limited has increased its earnings per share (EPS) by an average of 30% a year, over the last three years (using a line of best fit). It saw its revenue drop 62% over the last year.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Vectus Biosystems Limited Been A Good Investment?
Given the total loss of 66% over three years, many shareholders in Vectus Biosystems Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Vectus Biosystems Limited is currently paying its CEO below what is normal for companies of its size.
Since the business is growing, many would argue this suggests the pay is modest. Despite some positives, it is likely that shareholders wanted better returns, given the performance over the last three years. We're not critical of the remuneration Karen Duggan receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. CEO compensation is an important area to keep your eyes on, but we've also identified 3 warning signs for Vectus Biosystems (2 are a bit concerning!) that you should be aware of before investing here.
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
