In 2005 Philippe Wolgen was appointed CEO of Clinuvel Pharmaceuticals Limited (ASX:CUV). 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Philippe Wolgen’s Compensation Compare With Similar Sized Companies?
Our data indicates that Clinuvel Pharmaceuticals Limited is worth AU$1.0b, and total annual CEO compensation is AU$2m. We note that’s an increase of 44% above last year. We looked at a group of companies with market capitalizations from AU$552m to AU$2.2b, and the median CEO compensation was AU$2m.
It would therefore appear that Clinuvel Pharmaceuticals Limited pays Philippe Wolgen more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Clinuvel Pharmaceuticals, below.
Is Clinuvel Pharmaceuticals Limited Growing?
Clinuvel Pharmaceuticals Limited has increased its earnings per share (EPS) by an average of 117% a year, over the last three years In the last year, its revenue is up 52%.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Clinuvel Pharmaceuticals Limited Been A Good Investment?
Most shareholders would probably be pleased with Clinuvel Pharmaceuticals Limited for providing a total return of 610% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared total CEO remuneration at Clinuvel Pharmaceuticals Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Clinuvel Pharmaceuticals Limited (free visualization of insider trades).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
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.