Shareholders May Be A Bit More Conservative With Actinogen Medical Limited's (ASX:ACW) CEO Compensation For Now
Key Insights
Actinogen Medical's Annual General Meeting to take place on 16th of November
Salary of AU$395.5k is part of CEO Steve Gourlay's total remuneration
The overall pay is comparable to the industry average
Actinogen Medical's three-year loss to shareholders was 15% while its EPS was down 23% over the past three years
In the past three years, shareholders of Actinogen Medical Limited (ASX:ACW) have seen a loss on their investment. Per share earnings growth is also poor, despite revenues growing. In light of this performance, shareholders will have a chance to question the board in the upcoming AGM on 16th of November, where they can impact on future company performance by voting on resolutions, including executive compensation. Here's our take on why we think shareholders might be hesitant about approving a raise at the moment.
Check out our latest analysis for Actinogen Medical
How Does Total Compensation For Steve Gourlay Compare With Other Companies In The Industry?
Our data indicates that Actinogen Medical Limited has a market capitalization of AU$40m, and total annual CEO compensation was reported as AU$657k for the year to June 2023. We note that's a decrease of 31% compared to last year. Notably, the salary which is AU$395.5k, represents most of the total compensation being paid.
On comparing similar-sized companies in the Australian Biotechs industry with market capitalizations below AU$315m, we found that the median total CEO compensation was AU$601k. This suggests that Actinogen Medical remunerates its CEO largely in line with the industry average. Moreover, Steve Gourlay also holds AU$1.3m worth of Actinogen Medical stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | AU$396k | AU$376k | 60% |
Other | AU$261k | AU$579k | 40% |
Total Compensation | AU$657k | AU$955k | 100% |
Speaking on an industry level, nearly 60% of total compensation represents salary, while the remainder of 40% is other remuneration. Our data reveals that Actinogen Medical allocates salary more or less in line with the wider market. 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.
A Look at Actinogen Medical Limited's Growth Numbers
Over the last three years, Actinogen Medical Limited has shrunk its earnings per share by 23% per year. It achieved revenue growth of 34% over the last year.
Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Actinogen Medical Limited Been A Good Investment?
With a three year total loss of 15% for the shareholders, Actinogen Medical Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
The returns to shareholders is disappointing along with lack of earnings growth, which goes some way in explaining the poor returns. In the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan is in line with their expectations.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 7 warning signs for Actinogen Medical (2 are a bit unpleasant!) that you should be aware of before investing here.
Important note: Actinogen Medical is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
