How Much is Cellmid's (ASX:CDY) CEO Getting Paid?

This article will reflect on the compensation paid to Maria Halasz who has served as CEO of Cellmid Limited (ASX:CDY) since 2007. This analysis will also assess whether Cellmid pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Cellmid

Comparing Cellmid Limited's CEO Compensation With the industry

At the time of writing, our data shows that Cellmid Limited has a market capitalization of AU$14m, and reported total annual CEO compensation of AU$701k for the year to June 2020. Notably, that's an increase of 41% over the year before. We note that the salary portion, which stands at AU$492.6k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below AU$264m, we found that the median total CEO compensation was AU$434k. This suggests that Maria Halasz is paid more than the median for the industry. Furthermore, Maria Halasz directly owns AU$315k worth of shares in the company.

On an industry level, around 65% of total compensation represents salary and 35% is other remuneration. There isn't a significant difference between Cellmid and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Cellmid Limited's Growth

Cellmid Limited has seen its earnings per share (EPS) increase by 16% a year over the past three years. It achieved revenue growth of 1.2% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Cellmid Limited Been A Good Investment?

Given the total shareholder loss of 76% over three years, many shareholders in Cellmid Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we noted earlier, Cellmid pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But the company has impressed with its EPS growth, but shareholder returns — over the same period — have been disappointing. Considering overall performance, we can't say Maria is underpaid, in fact compensation is definitely on the higher side.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 1 which doesn't sit too well with us) in Cellmid we think you should know about.

Switching gears from Cellmid, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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