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A Quick Analysis On MyFiziq's (ASX:MYQ) CEO Salary

This article will reflect on the compensation paid to Vlado Bosanac who has served as CEO of MyFiziq Limited (ASX:MYQ) since 2016. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for MyFiziq.

Check out our latest analysis for MyFiziq

Comparing MyFiziq Limited's CEO Compensation With the industry

Our data indicates that MyFiziq Limited has a market capitalization of AU$251m, and total annual CEO compensation was reported as AU$296k for the year to June 2020. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is AU$270.0k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations ranging from AU$130m to AU$518m, the reported median CEO total compensation was AU$799k. Accordingly, MyFiziq pays its CEO under the industry median. What's more, Vlado Bosanac holds AU$6.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2020

2019

Proportion (2020)

Salary

AU$270k

AU$270k

91%

Other

AU$26k

AU$26k

9%

Total Compensation

AU$296k

AU$296k

100%

Speaking on an industry level, nearly 61% of total compensation represents salary, while the remainder of 39% is other remuneration. MyFiziq pays out 91% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

ceo-compensation
ceo-compensation

MyFiziq Limited's Growth

MyFiziq Limited's earnings per share (EPS) grew 47% per year over the last three years. In the last year, its revenue is up 365%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has MyFiziq Limited Been A Good Investment?

We think that the total shareholder return of 131%, over three years, would leave most MyFiziq Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

As we touched on above, MyFiziq Limited is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. When taking into account the company's strong EPS growth over the past three years, it appears CEO compensation is modest. Plus, we can't ignore the impressive shareholder returns, and won't be surprised if some shareholders were to reward such excellent all-around performance with a raise.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 4 warning signs for MyFiziq (2 are concerning!) that you should be aware of before investing here.

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

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 (at) simplywallst.com.

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