In 2014, Marc Voigt was appointed CEO of Immutep Limited (ASX:IMM). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Marc Voigt’s Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Immutep Limited has a market cap of AU$59m, and reported total annual CEO compensation of AU$837k for the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at AU$399k. We took a group of companies with market capitalizations below AU$313m, and calculated the median CEO total compensation to be AU$385k.
Now let’s take a look at the pay mix on an industry and company level to gain a better understanding of where Immutep stands. Speaking on an industry level, we can see that nearly 63% of total compensation represents salary, while the remainder of 37% is other remuneration. Immutep does not set aside a larger portion of remuneration in the form of salary, maintaining the same rate as the wider market.
As you can see, Marc Voigt is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Immutep Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business. The graphic below shows how CEO compensation at Immutep has changed from year to year.
Is Immutep Limited Growing?
Over the last three years Immutep Limited has shrunk its earnings per share by an average of 8.3% per year (measured with a line of best fit). In the last year, its revenue is up 164%.
Investors should note that, over three years, earnings per share are down. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. It’s hard to reach a conclusion about business performance right now. This may be one to watch. You might want to check this free visual report on analyst forecasts for future earnings.
Has Immutep Limited Been A Good Investment?
With a three year total loss of 45%, Immutep Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We compared the total CEO remuneration paid by Immutep Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. Moving away from CEO compensation for the moment, we’ve identified 3 warning signs for Immutep that you should be aware of before investing.
Important note: Immutep may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
If you spot an error that warrants correction, please contact the editor at email@example.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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