Is Anatara Lifesciences Limited’s (ASX:ANR) CEO Paid Enough Relative To Peers?

Mel Bridges has been the CEO of Anatara Lifesciences Limited (ASX:ANR) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Anatara Lifesciences

How Does Mel Bridges’s Compensation Compare With Similar Sized Companies?

According to our data, Anatara Lifesciences Limited has a market capitalization of AU$11m, and pays its CEO total annual compensation worth AU$317k. (This number is for the twelve months until June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$261k. We looked at a group of companies with market capitalizations under AU$295m, and the median CEO total compensation was AU$354k.

So Mel Bridges is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Anatara Lifesciences has changed over time.

ASX:ANR CEO Compensation, August 19th 2019
ASX:ANR CEO Compensation, August 19th 2019

Is Anatara Lifesciences Limited Growing?

Over the last three years Anatara Lifesciences Limited has shrunk its earnings per share by an average of 47% per year (measured with a line of best fit). It saw its revenue drop -45% over the last year.

Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.

Has Anatara Lifesciences Limited Been A Good Investment?

Given the total loss of 79% over three years, many shareholders in Anatara Lifesciences Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

Mel Bridges is paid around what is normal the leaders of comparable size companies.

The company isn’t growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don’t think the CEO is underpaid! Whatever your view on compensation, you might want to check if insiders are buying or selling Anatara Lifesciences shares (free trial).

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.