Shareholders May Not Be So Generous With Anteris Technologies Ltd's (ASX:AVR) CEO Compensation And Here's Why

Key Insights

• Anteris Technologies' Annual General Meeting to take place on 29th of May
• Salary of AU$986.5k is part of CEO Wayne Paterson's total remuneration
• The total compensation is 595% higher than the average for the industry
• Anteris Technologies' EPS declined by 13% over the past three years while total shareholder return over the past three years was 165%

Anteris Technologies Ltd (ASX:AVR) has exhibited strong share price growth in the past few years. However, its earnings growth has not kept up, suggesting that there may be something amiss. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 29th of May. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

View our latest analysis for Anteris Technologies

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

Our data indicates that Anteris Technologies Ltd has a market capitalization of AU$370m, and total annual CEO compensation was reported as AU$5.3m for the year to December 2023. We note that's an increase of 50% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at AU$987k.

On comparing similar companies from the Australian Medical Equipment industry with market caps ranging from AU$150m to AU$600m, we found that the median CEO total compensation was AU$766k. Hence, we can conclude that Wayne Paterson is remunerated higher than the industry median. Furthermore, Wayne Paterson directly owns AU$391k worth of shares in the company.

Component	2023	2022	Proportion (2023)
Salary	AU$987k	AU$900k	19%
Other	AU$4.3m	AU$2.7m	81%
Total Compensation	AU$5.3m	AU$3.6m	100%

On an industry level, roughly 58% of total compensation represents salary and 42% is other remuneration. Anteris Technologies sets aside a smaller share of compensation for salary, in comparison to the overall 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

Over the last three years, Anteris Technologies Ltd has shrunk its earnings per share by 13% per year. Its revenue is down 10% over the previous year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Anteris Technologies Ltd Been A Good Investment?

Boasting a total shareholder return of 165% over three years, Anteris Technologies Ltd has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Despite the strong returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about the stock keeping up its current momentum. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 4 warning signs (and 1 which is a bit concerning) in Anteris Technologies we think you should know about.

Switching gears from Anteris Technologies, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.