Yahoo Finance Why MyFiziq Limited's (ASX:MYQ) CEO Pay Matters To You
In 2016 Vlado Bosanac was appointed CEO of MyFiziq Limited (ASX:MYQ). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for MyFiziq
How Does Vlado Bosanac's Compensation Compare With Similar Sized Companies?
According to our data, MyFiziq Limited has a market capitalization of AU$16m, and paid its CEO total annual compensation worth AU$296k over the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at AU$270k. We took a group of companies with market capitalizations below AU$315m, and calculated the median CEO total compensation to be AU$390k.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where MyFiziq stands. On an industry level, roughly 67% of total compensation represents salary and 33% is other remuneration. MyFiziq pays out 91% of aggregate payment in the shape of a salary, which is significantly higher than the industry average.
So Vlado Bosanac receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance. You can see a visual representation of the CEO compensation at MyFiziq, below.
Is MyFiziq Limited Growing?
MyFiziq Limited saw earnings per share stay pretty flat over the last three years, albeit with a slight decrease, according to the line of best fit. It saw its revenue drop 47% over the last year.
Unfortunately there is a complete lack of earnings per share improvement, over three years. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.
Has MyFiziq Limited Been A Good Investment?
Boasting a total shareholder return of 190% over three years, MyFiziq 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...
Vlado Bosanac is paid around the same as most CEOs of similar size companies.
We feel that earnings per share have been a bit disappointing, but it's nice to see positive shareholder returns over the last three years. So we think most shareholders wouldn't be too worried about CEO compensation, which is close to the median for similar sized companies. On another note, MyFiziq has 7 warning signs (and 4 which are a bit unpleasant) we think you should know about.
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.
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.
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