Shareholders Will Probably Not Have Any Issues With AVITA Medical, Inc.'s (NASDAQ:RCEL) CEO Compensation

Key Insights

• AVITA Medical will host its Annual General Meeting on 4th of June
• CEO Jim Corbett's total compensation includes salary of US$625.0k
• The overall pay is comparable to the industry average
• Over the past three years, AVITA Medical's EPS fell by 29% and over the past three years, the total shareholder return was 11%

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Under the guidance of CEO Jim Corbett, AVITA Medical, Inc. (NASDAQ:RCEL) has performed reasonably well recently. As shareholders go into the upcoming AGM on 4th of June, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.

See our latest analysis for AVITA Medical

How Does Total Compensation For Jim Corbett Compare With Other Companies In The Industry?

According to our data, AVITA Medical, Inc. has a market capitalization of US$160m, and paid its CEO total annual compensation worth US$3.2m over the year to December 2024. That's a notable increase of 57% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$625k.

On examining similar-sized companies in the American Biotechs industry with market capitalizations between US$100m and US$400m, we discovered that the median CEO total compensation of that group was US$3.3m. This suggests that AVITA Medical remunerates its CEO largely in line with the industry average. Furthermore, Jim Corbett directly owns US$72k worth of shares in the company.

Speaking on an industry level, nearly 22% of total compensation represents salary, while the remainder of 78% is other remuneration. It's interesting to note that AVITA Medical allocates a smaller portion of compensation to salary 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 AVITA Medical, Inc.'s Growth Numbers

Over the last three years, AVITA Medical, Inc. has shrunk its earnings per share by 29% per year. In the last year, its revenue is up 41%.

Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has AVITA Medical, Inc. Been A Good Investment?

With a total shareholder return of 11% over three years, AVITA Medical, Inc. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Some shareholders will be pleased by the relatively good results, however, the results could still be improved. Despite robust revenue growth, until EPS growth improves, shareholders may be hesitant to increase CEO pay by too much.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 2 warning signs for AVITA Medical (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Important note: AVITA Medical 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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.