Does AFT Pharmaceuticals Limited's (NZSE:AFT) CEO Pay Compare Well With Peers?
Hartley Atkinson became the CEO of AFT Pharmaceuticals Limited (NZSE:AFT) in 1997. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for AFT Pharmaceuticals
How Does Hartley Atkinson's Compensation Compare With Similar Sized Companies?
Our data indicates that AFT Pharmaceuticals Limited is worth NZ$360m, and total annual CEO compensation was reported as NZ$556k for the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at NZ$431k. We examined companies with market caps from NZ$156m to NZ$624m, and discovered that the median CEO total compensation of that group was NZ$785k.
That means Hartley Atkinson receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at AFT Pharmaceuticals has changed over time.
Is AFT Pharmaceuticals Limited Growing?
On average over the last three years, AFT Pharmaceuticals Limited has grown earnings per share (EPS) by 78% each year (using a line of best fit). It achieved revenue growth of 13% over the last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to check this free visual report on analyst forecasts for future earnings.
Has AFT Pharmaceuticals Limited Been A Good Investment?
Most shareholders would probably be pleased with AFT Pharmaceuticals Limited for providing a total return of 41% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Hartley Atkinson is paid around what is normal the leaders of comparable size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling AFT Pharmaceuticals (free visualization of insider trades).
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
