Here's What We Learned About The CEO Pay At Integral Diagnostics Limited (ASX:IDX)

This article will reflect on the compensation paid to Ian Kadish who has served as CEO of Integral Diagnostics Limited (ASX:IDX) since 2017. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Integral Diagnostics

Comparing Integral Diagnostics Limited's CEO Compensation With the industry

According to our data, Integral Diagnostics Limited has a market capitalization of AU$886m, and paid its CEO total annual compensation worth AU$1.2m over the year to June 2020. We note that's an increase of 38% above last year. Notably, the salary which is AU$635.3k, represents most of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from AU$518m to AU$2.1b, we found that the median CEO total compensation was AU$1.2m. From this we gather that Ian Kadish is paid around the median for CEOs in the industry. What's more, Ian Kadish holds AU$399k worth of shares in the company in their own name.

Talking in terms of the industry, salary represented approximately 75% of total compensation out of all the companies we analyzed, while other remuneration made up 25% of the pie. Integral Diagnostics sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Integral Diagnostics Limited's Growth Numbers

Integral Diagnostics Limited has seen its earnings per share (EPS) increase by 5.2% a year over the past three years. In the last year, its revenue is up 19%.

This revenue growth could really point to a brighter future. And the modest growth in EPS isn't bad, either. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Integral Diagnostics Limited Been A Good Investment?

Most shareholders would probably be pleased with Integral Diagnostics Limited for providing a total return of 112% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

As we noted earlier, Integral Diagnostics pays its CEO in line with similar-sized companies belonging to the same industry. But the business isn't reporting great numbers in terms of EPS growth. On the other hand, shareholder returns over the same period have been very healthy. We would like to see EPS growth from the business, although we wouldn't say the CEO compensation is high.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 4 warning signs for Integral Diagnostics that you should be aware of before investing.

Important note: Integral Diagnostics is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

When trading Integral Diagnostics or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.