Yahoo Finance Here's What We Learned About The CEO Pay At Actinogen Medical Limited (ASX:ACW)
Bill Ketelbey became the CEO of Actinogen Medical Limited (ASX:ACW) in 2014, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Actinogen Medical.
Check out our latest analysis for Actinogen Medical
Comparing Actinogen Medical Limited's CEO Compensation With the industry
According to our data, Actinogen Medical Limited has a market capitalization of AU$28m, and paid its CEO total annual compensation worth AU$481k over the year to June 2020. That's a modest increase of 5.0% on the prior year. Notably, the salary which is AU$311.1k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under AU$265m, the reported median total CEO compensation was AU$436k. So it looks like Actinogen Medical compensates Bill Ketelbey in line with the median for the industry. Moreover, Bill Ketelbey also holds AU$239k worth of Actinogen Medical stock directly under their own name.
Component | 2020 | 2019 | Proportion (2020) |
Salary | AU$311k | AU$318k | 65% |
Other | AU$169k | AU$140k | 35% |
Total Compensation | AU$481k | AU$458k | 100% |
Speaking on an industry level, nearly 65% of total compensation represents salary, while the remainder of 35% is other remuneration. Our data reveals that Actinogen Medical allocates salary more or less in line with the wider market. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Actinogen Medical Limited's Growth Numbers
Over the past three years, Actinogen Medical Limited has seen its earnings per share (EPS) grow by 5.6% per year. It saw its revenue drop 28% over the last year.
We would prefer it if there was revenue growth, but the modest EPSgrowth gives us some relief. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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.
Has Actinogen Medical Limited Been A Good Investment?
With a three year total loss of 53% for the shareholders, Actinogen Medical Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
In Summary...
As we touched on above, Actinogen Medical Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. This doesn't look good when you place it against the backdrop of negative shareholder returns and flat EPS growth. CEO pay isn't exceptionally high, but considering poor performance, shareholders will likely hold off support for a raise until results improve.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 6 warning signs for Actinogen Medical (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from Actinogen Medical, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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