Dimitri Dimitriou is the CEO of ImmuPharma plc (LON:IMM). 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.
How Does Dimitri Dimitriou's Compensation Compare With Similar Sized Companies?
According to our data, ImmuPharma plc has a market capitalization of UK£16m, and paid its CEO total annual compensation worth UK£305k over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£244k. We took a group of companies with market capitalizations below UK£155m, and calculated the median CEO total compensation to be UK£248k.
So Dimitri Dimitriou is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at ImmuPharma has changed from year to year.
Is ImmuPharma plc Growing?
ImmuPharma plc has reduced its earnings per share by an average of 1.6% a year, over the last three years (measured with a line of best fit). It saw its revenue drop 86% over the last year.
In the last three years the company has failed to grow earnings per share. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.
Has ImmuPharma plc Been A Good Investment?
Given the total loss of 74% over three years, many shareholders in ImmuPharma plc are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
Dimitri Dimitriou is paid around the same as most CEOs of similar size companies.
After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. Shareholders may want to check for free if ImmuPharma insiders are buying or selling shares.
Important note: ImmuPharma 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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