In 2014 Marc Voigt was appointed CEO of Immutep Limited (ASX: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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Marc Voigt’s Compensation Compare With Similar Sized Companies?
Our data indicates that Immutep Limited is worth AU$136m, and total annual CEO compensation is AU$1m. We note that’s an increase of 100% above last year. We looked at a group of companies with market capitalizations under AU$283m, and the median CEO compensation was AU$358k.
Thus we can conclude that Marc Voigt receives more in total compensation than the median of a group of companies in the same market, and of similar size to Immutep 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.
The graphic below shows how CEO compensation at Immutep has changed from year to year.
Is Immutep Limited Growing?
Immutep Limited has increased its earnings per share (EPS) by an average of 74% a year, over the last three years It achieved revenue growth of 66% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Immutep Limited Been A Good Investment?
Given the total loss of 28% over three years, many shareholders in Immutep Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
We compared the total CEO remuneration paid by Immutep 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.
However we must not forget that the EPS growth has been very strong over three years. However, the returns to investors are far less impressive, over the same period. So shareholders might not feel great about the fact that CEO pay increased on last year. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Immutep Limited.
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.