Yahoo Finance It's Unlikely That Shareholders Will Increase Emyria Limited's (ASX:EMD) Compensation By Much This Year
Key Insights
Emyria will host its Annual General Meeting on 16th of November
CEO Michael Winlo's total compensation includes salary of AU$380.0k
The overall pay is comparable to the industry average
Over the past three years, Emyria's EPS grew by 5.3% and over the past three years, the total shareholder return was 3.3%
Performance at Emyria Limited (ASX:EMD) has been reasonably good and CEO Michael Winlo has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 16th of November. We present our case of why we think CEO compensation looks fair.
See our latest analysis for Emyria
Comparing Emyria Limited's CEO Compensation With The Industry
Our data indicates that Emyria Limited has a market capitalization of AU$29m, and total annual CEO compensation was reported as AU$620k for the year to June 2023. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at AU$380.0k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the Australian Pharmaceuticals industry with market capitalizations under AU$313m, the reported median total CEO compensation was AU$679k. So it looks like Emyria compensates Michael Winlo in line with the median for the industry.
Component | 2023 | 2022 | Proportion (2023) |
Salary | AU$380k | AU$486k | 61% |
Other | AU$240k | AU$129k | 39% |
Total Compensation | AU$620k | AU$615k | 100% |
Talking in terms of the industry, salary represented approximately 61% of total compensation out of all the companies we analyzed, while other remuneration made up 39% of the pie. Emyria is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. 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.
Emyria Limited's Growth
Emyria Limited's earnings per share (EPS) grew 5.3% per year over the last three years. It saw its revenue drop 13% over the last year.
We would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Emyria Limited Been A Good Investment?
Emyria Limited has generated a total shareholder return of 3.3% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.
To Conclude...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 5 warning signs for Emyria (2 are a bit concerning!) that you should be aware of before investing here.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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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.
