Increases to CEO Compensation Might Be Put On Hold For Now at Anteris Technologies Ltd (ASX:AVR)

Shareholders of Anteris Technologies Ltd (ASX:AVR) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 15 July 2021 could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for Anteris Technologies

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

According to our data, Anteris Technologies Ltd has a market capitalization of AU$53m, and paid its CEO total annual compensation worth AU$1.8m over the year to December 2020. We note that's a small decrease of 5.8% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$829k.

In comparison with other companies in the industry with market capitalizations under AU$267m, the reported median total CEO compensation was AU$512k. Accordingly, our analysis reveals that Anteris Technologies Ltd pays Wayne Paterson north of the industry median. What's more, Wayne Paterson holds AU$70k worth of shares in the company in their own name.

Component	2020	2019	Proportion (2020)
Salary	AU$829k	AU$898k	46%
Other	AU$961k	AU$1.0m	54%
Total Compensation	AU$1.8m	AU$1.9m	100%

Talking in terms of the industry, salary represented approximately 67% of total compensation out of all the companies we analyzed, while other remuneration made up 33% of the pie. It's interesting to note that Anteris Technologies allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Anteris Technologies Ltd's Growth Numbers

Anteris Technologies Ltd has seen its earnings per share (EPS) increase by 74% a year over the past three years. Its revenue is down 58% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. 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?

The return of -70% over three years would not have pleased Anteris Technologies Ltd shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 3 warning signs for Anteris Technologies that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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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