In 2004 Simon Wilkinson was appointed CEO of Amplia Therapeutics Limited (ASX:ATX). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Simon Wilkinson’s Compensation Compare With Similar Sized Companies?
According to our data, Amplia Therapeutics Limited has a market capitalization of AU$9.4m, and pays its CEO total annual compensation worth AU$336k. (This figure is for the year to 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth AU$335k. We took a group of companies with market capitalizations below AU$274m, and calculated the median CEO compensation to be AU$362k.
So Simon Wilkinson is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance. Take a look at Amplia Therapeutics’s growth trajectory by checking out this more detailed historical graph of earnings, revenue and cash flow.
You can see, below, how CEO compensation at Amplia Therapeutics has changed over time.
Is Amplia Therapeutics Limited Growing?
Amplia Therapeutics Limited has increased its earnings per share (EPS) by an average of 8.1% a year, over the last three years It saw its revenue drop -68% over the last year.
I would argue that the lack of revenue growth in the last year is less than ideal, but the improvement in EPS is good. It’s hard to reach a conclusion about business performance right now. This may be one to watch.
Has Amplia Therapeutics Limited Been A Good Investment?
Since shareholders would have lost about 88% over three years, some Amplia Therapeutics Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
Simon Wilkinson is paid around what is normal the leaders of comparable size companies.
The company cannot boast particularly strong per share growth. And it’s hard to argue that the returns over the last three years have delighted. So suffice it to say we don’t think the compensation is modest! Shareholders may want to check for free if Amplia Therapeutics insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.