We Think Shareholders Are Less Likely To Approve A Pay Rise For Regeneus Ltd's (ASX:RGS) CEO For Now
Key Insights
Regeneus' Annual General Meeting to take place on 30th of November
CEO Karolis Rosickas' total compensation includes salary of AU$250.0k
The overall pay is comparable to the industry average
Regeneus' EPS declined by 74% over the past three years while total shareholder loss over the past three years was 96%
The underwhelming share price performance of Regeneus Ltd (ASX:RGS) in the past three years would have disappointed many shareholders. Per share earnings growth is also lacking, despite revenue growth. In light of this performance, shareholders will have a chance to question the board in the upcoming AGM on 30th 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 Regeneus
Comparing Regeneus Ltd's CEO Compensation With The Industry
According to our data, Regeneus Ltd has a market capitalization of AU$1.2m, and paid its CEO total annual compensation worth AU$737k over the year to June 2023. That's a notable decrease of 38% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$250k.
For comparison, other companies in the Australian Biotechs industry with market capitalizations below AU$306m, reported a median total CEO compensation of AU$584k. So it looks like Regeneus compensates Karolis Rosickas in line with the median for the industry.
Component | 2023 | 2022 | Proportion (2023) |
Salary | AU$250k | AU$250k | 34% |
Other | AU$487k | AU$939k | 66% |
Total Compensation | AU$737k | AU$1.2m | 100% |
Talking in terms of the industry, salary represented approximately 60% of total compensation out of all the companies we analyzed, while other remuneration made up 40% of the pie. Regeneus sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Regeneus Ltd's Growth
Regeneus Ltd has reduced its earnings per share by 74% a year over the last three years. It achieved revenue growth of 94% over the last year.
Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Regeneus Ltd Been A Good Investment?
With a total shareholder return of -96% over three years, Regeneus Ltd shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. 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.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 5 warning signs for Regeneus that you should be aware of before investing.
Switching gears from Regeneus, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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.
