Yahoo Finance How Much is ImpediMed Limited’s (ASX:IPD) CEO Getting Paid?
Rick Carreon became the CEO of ImpediMed Limited (ASX:IPD) in 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for ImpediMed
How Does Rick Carreon’s Compensation Compare With Similar Sized Companies?
Our data indicates that ImpediMed Limited is worth AU$89m, and total annual CEO compensation is AU$2.4m. (This figure is for the year to 2018). We note that’s an increase of 22% above last year. We think total compensation is more important but we note that the CEO salary is lower, at AU$647k. We examined a group of similar sized companies, with market capitalizations of below AU$278m. The median CEO compensation in that group is AU$365k.
It would therefore appear that ImpediMed Limited pays Rick Carreon more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at ImpediMed has changed from year to year.
Is ImpediMed Limited Growing?
ImpediMed Limited has reduced its earnings per share by an average of 5.1% a year, over the last three years. Its revenue is down -17% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
It could be important to check this free visual depiction of what analysts expect for the future.
Has ImpediMed Limited Been A Good Investment?
With a three year total loss of 78%, ImpediMed Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
We compared total CEO remuneration at ImpediMed Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.
Arguably worse, investors are without a positive return for the last three years. This contrasts with the growth in CEO remuneration, year on year. Some might well form the view that the CEO is paid too generously! Whatever your view on compensation, you might want to check if insiders are buying or selling ImpediMed shares (free trial).
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
