How Does Actinogen Medical's (ASX:ACW) CEO Pay Compare With Company Performance?

This article will reflect on the compensation paid to Bill Ketelbey who has served as CEO of Actinogen Medical Limited (ASX:ACW) since 2014. 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 Actinogen Medical

Comparing Actinogen Medical Limited's CEO Compensation With the industry

At the time of writing, our data shows that Actinogen Medical Limited has a market capitalization of AU$30m, and reported total annual CEO compensation of AU$481k for the year to June 2020. That's just a smallish increase of 5.0% on last year. Notably, the salary which is AU$311.1k, represents most of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below AU$257m, we found that the median total CEO compensation was AU$408k. So it looks like Actinogen Medical compensates Bill Ketelbey in line with the median for the industry. Furthermore, Bill Ketelbey directly owns AU$251k worth of shares in the company.

On an industry level, roughly 65% of total compensation represents salary and 35% is other remuneration. Our data reveals that Actinogen Medical allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Actinogen Medical Limited's Growth

Actinogen Medical Limited's earnings per share (EPS) grew 5.6% per year over the last three years. It saw its revenue drop 28% over the last year.

We generally like to see a little revenue growth, but the modest EPSgrowth gives us some relief. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Actinogen Medical Limited Been A Good Investment?

With a three year total loss of 46% for the shareholders, Actinogen Medical Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As we noted earlier, Actinogen Medical pays its CEO in line with similar-sized companies belonging to the same industry. This doesn't look good when you place it against the backdrop of negative shareholder returns and flat EPS growth. Although we wouldn't say CEO compensation is exceptionally high, it isn't very low either. Shareholders might want to see substantial improvements in returns before agreeing that Bill deserves a raise.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 6 warning signs for Actinogen Medical you should be aware of, and 1 of them is a bit unpleasant.

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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