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What Can We Learn About AIM ImmunoTech's (NYSEMKT:AIM) CEO Compensation?

Simply Wall St
·3 min read

This article will reflect on the compensation paid to Thomas Equels who has served as CEO of AIM ImmunoTech Inc. (NYSEMKT:AIM) since 2016. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for AIM ImmunoTech.

Check out our latest analysis for AIM ImmunoTech

How Does Total Compensation For Thomas Equels Compare With Other Companies In The Industry?

Our data indicates that AIM ImmunoTech Inc. has a market capitalization of US$81m, and total annual CEO compensation was reported as US$890k for the year to December 2019. We note that's a decrease of 24% compared to last year. In particular, the salary of US$703.1k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$1.0m. From this we gather that Thomas Equels is paid around the median for CEOs in the industry. Moreover, Thomas Equels also holds US$374k worth of AIM ImmunoTech stock directly under their own name.

Component

2019

2018

Proportion (2019)

Salary

US$703k

US$751k

79%

Other

US$187k

US$421k

21%

Total Compensation

US$890k

US$1.2m

100%

On an industry level, roughly 25% of total compensation represents salary and 75% is other remuneration. It's interesting to note that AIM ImmunoTech pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
ceo-compensation

AIM ImmunoTech Inc.'s Growth

Over the past three years, AIM ImmunoTech Inc. has seen its earnings per share (EPS) grow by 62% per year. In the last year, its revenue is down 48%.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has AIM ImmunoTech Inc. Been A Good Investment?

With a three year total loss of 86% for the shareholders, AIM ImmunoTech Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As we noted earlier, AIM ImmunoTech pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, shareholder returns paint a sorry picture for the company, finishing in the red over the last three years. But on the bright side, EPS growth is positive over the same period. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 6 warning signs for AIM ImmunoTech you should be aware of, and 3 of them are potentially serious.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.