Alex Martin became the CEO of Realm Therapeutics Plc (LON:RLM) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Alex Martin’s Compensation Compare With Similar Sized Companies?
Our data indicates that Realm Therapeutics Plc is worth UK£9.6m, and total annual CEO compensation is US$406k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$317k.
That means Alex Martin receives fairly typical remuneration for the CEO of a company that size. 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 Realm Therapeutics, below.
Is Realm Therapeutics Plc Growing?
Over the last three years Realm Therapeutics Plc has shrunk its earnings per share by an average of 19% per year. It saw its revenue drop -55% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. So this free report on the analyst consensus forecasts could help you make a master move on this stock.
Has Realm Therapeutics Plc Been A Good Investment?
Since shareholders would have lost about 58% over three years, some Realm Therapeutics Plc shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
Alex Martin is paid around what is normal the leaders of comparable size companies.
Returns have been disappointing and the company is not growing its earnings per share. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. This article has given you an idea about how to analyse CEO remuneration, but it’s important to look at other leaders in the company, too. So it makes sense to check how long the Board of Directors has been in place.
Of course Realm Therapeutics may not be the best stock to buy. So you may wish to see this free collection of other companies that have high ROE and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.