What Did Cellmid Limited's (ASX:CDY) CEO Take Home Last Year?
Maria Halasz became the CEO of Cellmid Limited (ASX:CDY) in 2007. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Cellmid
How Does Maria Halasz's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Cellmid Limited has a market cap of AU$26m, and reported total annual CEO compensation of AU$681k for the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$447k. We examined a group of similar sized companies, with market capitalizations of below AU$327m. The median CEO total compensation in that group is AU$396k.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Cellmid. On a sector level, around 63% of total compensation represents salary and 37% is other remuneration. Cellmid is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation
Thus we can conclude that Maria Halasz receives more in total compensation than the median of a group of companies in the same market, and of similar size to Cellmid Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business. You can see a visual representation of the CEO compensation at Cellmid, below.
Is Cellmid Limited Growing?
On average over the last three years, Cellmid Limited has seen earnings per share (EPS) move in a favourable direction by 6.7% each year (using a line of best fit). In the last year, its revenue is up 27%.
It's hard to interpret the strong revenue growth as anything other than a positive. With that in mind, the modestly improving EPS seems positive. I wouldn't say this is necessarily top notch growth, but it is certainly promising. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Cellmid Limited Been A Good Investment?
With a three year total loss of 56%, Cellmid Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We compared total CEO remuneration at Cellmid Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Although we'd stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. CEO compensation is an important area to keep your eyes on, but we've also identified 7 warning signs for Cellmid (2 don't sit too well with us!) that you should be aware of before investing here.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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