Jonathan Rubinsztein became the CEO of Infomedia Ltd (ASX:IFM) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Jonathan Rubinsztein's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Infomedia Ltd has a market cap of AU$646m, and reported total annual CEO compensation of AU$1.3m for the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$531k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of AU$290m to AU$1.2b. The median total CEO compensation was AU$1.0m.
So Jonathan Rubinsztein 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 Infomedia has changed from year to year.
Is Infomedia Ltd Growing?
On average over the last three years, Infomedia Ltd has grown earnings per share (EPS) by 14% each year (using a line of best fit). It achieved revenue growth of 16% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.
Has Infomedia Ltd Been A Good Investment?
I think that the total shareholder return of 222%, over three years, would leave most Infomedia Ltd 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.
Jonathan Rubinsztein is paid around what is normal the leaders of comparable size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if Infomedia insiders are buying or selling shares.
If you want to buy a stock that is better than Infomedia, this free list of high return, low debt companies is a great place to look.
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