Carlos Manuel Arjol became the CEO of Oryzon Genomics S.A. (BME:ORY) in 2001. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Carlos Manuel Arjol’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Oryzon Genomics S.A. has a market cap of €101m, and is paying total annual CEO compensation of €58k. (This figure is for the year to 2015). While we always look at total compensation first, we note that the salary component is less, at €7.0k. We examined a group of similar sized companies, with market capitalizations of below €175m. The median CEO compensation in that group is €225k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance. So this free report on the analyst consensus forecasts could help you make a master move on this stock.
You can see a visual representation of the CEO compensation at Oryzon Genomics, below.
Is Oryzon Genomics S.A. Growing?
On average over the last three years, Oryzon Genomics S.A. has grown earnings per share (EPS) by 7.5% each year (using a line of best fit). It achieved revenue growth of 14% over the last year.
This revenue growth could really point to a brighter future. And, while modest, the earnings per share growth is noticeable. So while we’d stop just short of calling this a top performer, but we think it is well worth watching.
Has Oryzon Genomics S.A. Been A Good Investment?
Since shareholders would have lost about 23% over three years, some Oryzon Genomics S.A. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
Oryzon Genomics S.A. is currently paying its CEO below what is normal for companies of its size.
It’s well worth noting that while Carlos Manuel Arjol is paid less than most company leaders (at similar sized companies), performance has been somewhat uninspiring, and total returns have been lacking. So while shareholders shouldn’t be overly concerned about CEO compensation, they would probably like to see improved shareholder returns before seeing a pay increase. So you may want to check if insiders are buying Oryzon Genomics shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.