Andrew Saker has been the CEO of IMF Bentham Limited (ASX:IMF) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Andrew Saker's Compensation Compare With Similar Sized Companies?
According to our data, IMF Bentham Limited has a market capitalization of AU$769m, and paid its CEO total annual compensation worth AU$1.8m over the year to June 2018. While we always look at total compensation first, we note that the salary component is less, at AU$1.2m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of AU$295m to AU$1.2b. The median total CEO compensation was AU$1.1m.
Thus we can conclude that Andrew Saker receives more in total compensation than the median of a group of companies in the same market, and of similar size to IMF Bentham Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at IMF Bentham, below.
Is IMF Bentham Limited Growing?
On average over the last three years, IMF Bentham Limited has shrunk earnings per share by 117% each year (measured with a line of best fit). In the last year, its revenue is up 87%.
The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. You might want to check this free visual report on analyst forecasts for future earnings.
Has IMF Bentham Limited Been A Good Investment?
I think that the total shareholder return of 123%, over three years, would leave most IMF Bentham 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.
We compared the total CEO remuneration paid by IMF Bentham Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years returns to investors have been great, though we might have liked stronger business growth. So, considering these tasty returns, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at IMF Bentham.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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