This article will reflect on the compensation paid to Jaap Stuut who has served as CEO of Immunodiagnostic Systems Holdings PLC (LON:IDH) since 2017. This analysis will also assess whether Immunodiagnostic Systems Holdings pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Comparing Immunodiagnostic Systems Holdings PLC's CEO Compensation With the industry
Our data indicates that Immunodiagnostic Systems Holdings PLC has a market capitalization of UK£62m, and total annual CEO compensation was reported as UK£284k for the year to March 2020. That's a notable increase of 22% on last year. Notably, the salary which is UK£176.0k, represents most of the total compensation being paid.
For comparison, other companies in the industry with market capitalizations below UK£147m, reported a median total CEO compensation of UK£236k. This suggests that Immunodiagnostic Systems Holdings remunerates its CEO largely in line with the industry average.
On an industry level, roughly 62% of total compensation represents salary and 38% is other remuneration. Our data reveals that Immunodiagnostic Systems Holdings allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Immunodiagnostic Systems Holdings PLC's Growth
Immunodiagnostic Systems Holdings PLC has reduced its earnings per share by 49% a year over the last three years. Its revenue is down 12% over the previous year.
Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Immunodiagnostic Systems Holdings PLC Been A Good Investment?
Given the total shareholder loss of 22% over three years, many shareholders in Immunodiagnostic Systems Holdings PLC are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
As we touched on above, Immunodiagnostic Systems Holdings PLC is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.
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 3 warning signs for Immunodiagnostic Systems Holdings that investors should think about before committing capital to this stock.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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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