Does Anteris Technologies' (ASX:AVR) CEO Salary Compare Well With The Performance Of The Company?

This article will reflect on the compensation paid to Wayne Paterson who has served as CEO of Anteris Technologies Ltd (ASX:AVR) since 2016. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Anteris Technologies

How Does Total Compensation For Wayne Paterson Compare With Other Companies In The Industry?

At the time of writing, our data shows that Anteris Technologies Ltd has a market capitalization of AU$34m, and reported total annual CEO compensation of AU$1.8m for the year to December 2020. That's a slightly lower by 5.8% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at AU$829k.

On comparing similar-sized companies in the industry with market capitalizations below AU$254m, we found that the median total CEO compensation was AU$549k. Accordingly, our analysis reveals that Anteris Technologies Ltd pays Wayne Paterson north of the industry median.

Speaking on an industry level, nearly 63% of total compensation represents salary, while the remainder of 37% is other remuneration. In Anteris Technologies' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Anteris Technologies Ltd's Growth

Anteris Technologies Ltd's earnings per share (EPS) grew 74% per year over the last three years. It saw its revenue drop 58% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Anteris Technologies Ltd Been A Good Investment?

Given the total shareholder loss of 79% over three years, many shareholders in Anteris Technologies Ltd are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As previously discussed, Wayne is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But the company has impressed with its EPS growth, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Considering overall performance, we can't say Wayne is underpaid, in fact compensation is definitely on the higher side.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 3 warning signs for Anteris Technologies that investors should be aware of in a dynamic business environment.

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. 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.
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