What We Learned About MyFiziq's (ASX:MYQ) CEO Compensation

Vlado Bosanac became the CEO of MyFiziq Limited (ASX:MYQ) in 2016, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for MyFiziq.

See our latest analysis for MyFiziq

Comparing MyFiziq Limited's CEO Compensation With the industry

According to our data, MyFiziq Limited has a market capitalization of AU$251m, and paid its CEO total annual compensation worth AU$296k over the year to June 2020. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at AU$270.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations ranging from AU$130m to AU$518m, the reported median CEO total compensation was AU$799k. That is to say, Vlado Bosanac is paid under the industry median. Furthermore, Vlado Bosanac directly owns AU$6.3m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 61% of total compensation represents salary, while the remainder of 39% is other remuneration. It's interesting to note that MyFiziq pays out a greater portion of remuneration through salary, compared to the industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

MyFiziq Limited's Growth

Over the past three years, MyFiziq Limited has seen its earnings per share (EPS) grow by 47% per year. It achieved revenue growth of 365% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has MyFiziq Limited Been A Good Investment?

We think that the total shareholder return of 131%, over three years, would leave most MyFiziq Limited shareholders smiling. 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, MyFiziq pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Since EPS growth is heading in a positive direction; many would agree with our assessment that the pay is modest. And given most shareholders are probably very happy with recent shareholder returns, they might even think Vlado deserves a raise!

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 4 warning signs (and 2 which don't sit too well with us) in MyFiziq we think you should know about.

Important note: MyFiziq is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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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