Yahoo Finance We Think The Compensation For Apiam Animal Health Limited's (ASX:AHX) CEO Looks About Right
Under the guidance of CEO Chris Richards, Apiam Animal Health Limited (ASX:AHX) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 25 November 2021. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
View our latest analysis for Apiam Animal Health
Comparing Apiam Animal Health Limited's CEO Compensation With the industry
At the time of writing, our data shows that Apiam Animal Health Limited has a market capitalization of AU$125m, and reported total annual CEO compensation of AU$455k for the year to June 2021. Notably, that's an increase of 13% over the year before. In particular, the salary of AU$360.9k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the industry with market capitalizations below AU$275m, we found that the median total CEO compensation was AU$423k. This suggests that Apiam Animal Health remunerates its CEO largely in line with the industry average. Moreover, Chris Richards also holds AU$29m worth of Apiam Animal Health stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2021 | 2020 | Proportion (2021) |
Salary | AU$361k | AU$355k | 79% |
Other | AU$94k | AU$47k | 21% |
Total Compensation | AU$455k | AU$401k | 100% |
On an industry level, roughly 55% of total compensation represents salary and 45% is other remuneration. It's interesting to note that Apiam Animal Health pays out a greater portion of remuneration through salary, compared to the industry. 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 Apiam Animal Health Limited's Growth Numbers
Apiam Animal Health Limited has seen its earnings per share (EPS) increase by 5.3% a year over the past three years. It achieved revenue growth of 6.6% over the last year.
We'd prefer higher revenue growth, but the modest improvement in EPS is good. Considering these factors we'd say performance has been pretty decent, though not amazing. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Apiam Animal Health Limited Been A Good Investment?
Boasting a total shareholder return of 99% over three years, Apiam Animal Health 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.
To Conclude...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 4 warning signs for Apiam Animal Health that investors should be aware of in a dynamic business environment.
Important note: Apiam Animal Health is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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