Yahoo Finance Shareholders Will Likely Find Dimerix Limited's (ASX:DXB) CEO Compensation Acceptable
Key Insights
Dimerix to hold its Annual General Meeting on 21st of November
Salary of AU$349.5k is part of CEO Nina Webster's total remuneration
Total compensation is 35% below industry average
Dimerix's three-year loss to shareholders was 39% while its EPS was down 16% over the past three years
Performance at Dimerix Limited (ASX:DXB) has been rather uninspiring recently and shareholders may be wondering how CEO Nina Webster plans to fix this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 21st of November. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We have prepared some analysis below to show that CEO compensation looks to be reasonable.
View our latest analysis for Dimerix
Comparing Dimerix Limited's CEO Compensation With The Industry
According to our data, Dimerix Limited has a market capitalization of AU$66m, and paid its CEO total annual compensation worth AU$387k over the year to June 2023. We note that's a decrease of 25% compared to last year. Notably, the salary which is AU$349.5k, represents most of the total compensation being paid.
For comparison, other companies in the Australian Biotechs industry with market capitalizations below AU$314m, reported a median total CEO compensation of AU$600k. This suggests that Nina Webster is paid below the industry median.
Component | 2023 | 2022 | Proportion (2023) |
Salary | AU$350k | AU$341k | 90% |
Other | AU$37k | AU$176k | 10% |
Total Compensation | AU$387k | AU$517k | 100% |
On an industry level, roughly 60% of total compensation represents salary and 40% is other remuneration. According to our research, Dimerix has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Dimerix Limited's Growth Numbers
Dimerix Limited has reduced its earnings per share by 16% a year over the last three years. Its revenue is up 39% over the last year.
Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Dimerix Limited Been A Good Investment?
The return of -39% over three years would not have pleased Dimerix Limited shareholders. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
The fact that shareholders are sitting on a loss is certainly disheartening. The fact that earnings growth has gone backwards could be a factor for the downward trend in the share price. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 5 warning signs (and 3 which don't sit too well with us) in Dimerix we think you should know about.
Switching gears from Dimerix, 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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
