Yahoo Finance Is Imugene Limited's (ASX:IMU) CEO Paid At A Competitive Rate?
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Leslie Chong became the CEO of Imugene Limited (ASX:IMU) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Imugene
How Does Leslie Chong's Compensation Compare With Similar Sized Companies?
Our data indicates that Imugene Limited is worth AU$61m, and total annual CEO compensation is AU$389k. (This number is for the twelve months until June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$300k. We examined a group of similar sized companies, with market capitalizations of below AU$285m. The median CEO total compensation in that group is AU$354k.
So Leslie Chong receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Imugene has changed from year to year.
Is Imugene Limited Growing?
Over the last three years Imugene Limited has grown its earnings per share (EPS) by an average of 9.8% per year (using a line of best fit). Its revenue is up 153% over last year.
It's great to see that revenue growth is strong. Combined with modest EPS growth, we get a good impression of the company. I wouldn't say this is necessarily top notch growth, but it is certainly promising. You might want to check this free visual report on analyst forecasts for future earnings.
Has Imugene Limited Been A Good Investment?
Boasting a total shareholder return of 72% over three years, Imugene Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Leslie Chong is paid around what is normal the leaders of comparable size companies.
The company isn't showing particularly great growth, but shareholder returns have been pleasing. So we can conclude that on this analysis the CEO compensation seems pretty sound. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Imugene.
If you want to buy a stock that is better than Imugene, this free list of high return, low debt companies is a great place to look.
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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. Thank you for reading.
