Philippe Wolgen has been the CEO of Clinuvel Pharmaceuticals Limited (ASX:CUV) since 2005. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Philippe Wolgen's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Clinuvel Pharmaceuticals Limited has a market cap of AU$1.4b, and reported total annual CEO compensation of AU$1.4m for the year to June 2019. That's below the compensation, last year. We think total compensation is more important but we note that the CEO salary is lower, at AU$894k. We examined companies with market caps from AU$580m to AU$2.3b, and discovered that the median CEO total compensation of that group was AU$1.4m.
That means Philippe Wolgen receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Clinuvel Pharmaceuticals has changed over time.
Is Clinuvel Pharmaceuticals Limited Growing?
On average over the last three years, Clinuvel Pharmaceuticals Limited has grown earnings per share (EPS) by 74% each year (using a line of best fit). It achieved revenue growth of 22% over the last year.
This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Clinuvel Pharmaceuticals Limited Been A Good Investment?
I think that the total shareholder return of 277%, over three years, would leave most Clinuvel Pharmaceuticals 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.
Philippe Wolgen is paid around the same as most CEOs of similar size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! So you may want to check if insiders are buying Clinuvel Pharmaceuticals shares with their own money (free access).
Important note: Clinuvel Pharmaceuticals may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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