Jonathan Rubinsztein has been the CEO of Infomedia Ltd (ASX:IFM) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Infomedia pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for Infomedia
How Does Total Compensation For Jonathan Rubinsztein Compare With Other Companies In The Industry?
Our data indicates that Infomedia Ltd has a market capitalization of AU$681m, and total annual CEO compensation was reported as AU$1.1m for the year to June 2020. Notably, that's a decrease of 14% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at AU$507k.
On comparing similar companies from the same industry with market caps ranging from AU$261m to AU$1.0b, we found that the median CEO total compensation was AU$1.1m. From this we gather that Jonathan Rubinsztein is paid around the median for CEOs in the industry. What's more, Jonathan Rubinsztein holds AU$5.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | AU$507k | AU$531k | 46% |
| Other | AU$600k | AU$762k | 54% |
| Total Compensation | AU$1.1m | AU$1.3m | 100% |
Speaking on an industry level, nearly 60% of total compensation represents salary, while the remainder of 40% is other remuneration. In Infomedia's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Infomedia Ltd's Growth Numbers
Infomedia Ltd has seen its earnings per share (EPS) increase by 14% a year over the past three years. Its revenue is up 12% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Infomedia Ltd Been A Good Investment?
Boasting a total shareholder return of 128% over three years, Infomedia Ltd has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
As we noted earlier, Infomedia pays its CEO in line with similar-sized companies belonging to the same industry. Investors would surely be happy to see that returns have been great, and that EPS is up. Indeed, many might consider that Jonathan is compensated rather modestly, given the solid company performance! Also, such solid returns might lead to shareholders warming to the idea of a bump in pay.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Infomedia that investors should think about before committing capital to this stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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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About ASX:IFM
Infomedia
A technology company, develops and supplies electronic parts catalogues, service quoting software, and e-commerce solutions for the automotive industry worldwide.
Very undervalued with flawless balance sheet.
