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. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Simon Wilkinson’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Amplia Therapeutics Limited has a market cap of AU$5.1m, and is paying total annual CEO compensation of AU$336k. (This is based on the year to March 2018). Notably, the salary of AU$335k is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below AU$282m. The median CEO compensation in that group is AU$354k.
So Simon Wilkinson receives a similar amount to the median CEO pay, amongst 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 Amplia Therapeutics has changed over time.
Is Amplia Therapeutics Limited Growing?
Over the last three years Amplia Therapeutics Limited has grown its earnings per share (EPS) by an average of 24% per year (using a line of best fit). Its revenue is down -102% over last year.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Amplia Therapeutics Limited Been A Good Investment?
Since shareholders would have lost about 92% over three years, some Amplia Therapeutics Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
Simon Wilkinson is paid around the same as most CEOs of similar size companies.
We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Amplia Therapeutics (free visualization of insider trades).
Important note: Amplia Therapeutics may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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If you spot an error that warrants correction, please contact the editor at email@example.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.