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Mark Diamond became the CEO of Antisense Therapeutics Limited (ASX:ANP) in 2001. 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Mark Diamond's Compensation Compare With Similar Sized Companies?
Our data indicates that Antisense Therapeutics Limited is worth AU$20m, and total annual CEO compensation is AU$366k. (This number is for the twelve months until June 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth AU$366k. We took a group of companies with market capitalizations below AU$200m, and calculated the median CEO total compensation to be AU$246k.
Most shareholders would consider it a positive that Mark Diamond takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at Antisense Therapeutics has changed from year to year.
Is Antisense Therapeutics Limited Growing?
Over the last three years Antisense Therapeutics Limited has shrunk its earnings per share by an average of 18% per year (measured with a line of best fit). In the last year, its revenue is down -15%.
Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Antisense Therapeutics Limited Been A Good Investment?
I think that the total shareholder return of 33%, over three years, would leave most Antisense Therapeutics Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Antisense Therapeutics Limited is currently paying its CEO below what is normal for companies of its size.
It's well worth noting that while Mark Diamond is paid less than most company leaders (at similar sized companies), there isn't much EPS growth. Having said that, returns to shareholders have been great. Although we could see higher EPS growth, we'd argue the remuneration is not an issue, based on these observations. Whatever your view on compensation, you might want to check if insiders are buying or selling Antisense Therapeutics shares (free trial).
Important note: Antisense Therapeutics may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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 email@example.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.