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Is iSignthis Ltd's (ASX:ISX) CEO Paid At A Competitive Rate?

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Simply Wall St
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John Karantzis is the CEO of iSignthis Ltd (ASX:ISX). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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.

View our latest analysis for iSignthis

How Does John Karantzis's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that iSignthis Ltd has a market cap of AU$345m, and is paying total annual CEO compensation of AU$385k. (This is based on the year to June 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$307k. We looked at a group of companies with market capitalizations from AU$140m to AU$562m, and the median CEO total compensation was AU$762k.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

The graphic below shows how CEO compensation at iSignthis has changed from year to year.

ASX:ISX CEO Compensation, April 4th 2019
ASX:ISX CEO Compensation, April 4th 2019

Is iSignthis Ltd Growing?

Over the last three years iSignthis Ltd has grown its earnings per share (EPS) by an average of 45% per year (using a line of best fit). Its revenue is up 222% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has iSignthis Ltd Been A Good Investment?

I think that the total shareholder return of 45%, over three years, would leave most iSignthis 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.

In Summary...

iSignthis Ltd is currently paying its CEO below what is normal for companies of its size. Many would consider this to indicate that the pay is modest since the business is growing. And given most shareholders are probably very happy with recent returns, you might even think that John Karantzis deserves a raise!

It's not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. Whatever your view on compensation, you might want to check if insiders are buying or selling iSignthis shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.