How Much is Cellmid's (ASX:CDY) CEO Getting Paid?

This article will reflect on the compensation paid to Maria Halasz who has served as CEO of Cellmid Limited (ASX:CDY) since 2007. This analysis will also assess whether Cellmid pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Cellmid

How Does Total Compensation For Maria Halasz Compare With Other Companies In The Industry?

At the time of writing, our data shows that Cellmid Limited has a market capitalization of AU$12m, and reported total annual CEO compensation of AU$701k for the year to June 2020. Notably, that's an increase of 41% over the year before. In particular, the salary of AU$492.6k, 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 AU$283m, the reported median total CEO compensation was AU$438k. Accordingly, our analysis reveals that Cellmid Limited pays Maria Halasz north of the industry median. Moreover, Maria Halasz also holds AU$315k worth of Cellmid stock directly under their own name.

Talking in terms of the industry, salary represented approximately 65% of total compensation out of all the companies we analyzed, while other remuneration made up 35% of the pie. Our data reveals that Cellmid allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Cellmid Limited's Growth

Cellmid Limited has seen its earnings per share (EPS) increase by 16% a year over the past three years. Its revenue is up 1.2% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Cellmid Limited Been A Good Investment?

Since shareholders would have lost about 78% over three years, some Cellmid Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As previously discussed, Maria is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But the company has impressed with its EPS growth, but shareholder returns — over the same period — have been disappointing. Considering overall performance, we can't say Maria is underpaid, in fact compensation is definitely on the higher side.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 4 warning signs for Cellmid you should be aware of, and 2 of them are a bit unpleasant.

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@simplywallst.com.