Why Holista CollTech Limited's (ASX:HCT) CEO Pay Matters To You
Rajen Manickavasagar became the CEO of Holista CollTech Limited (ASX:HCT) in 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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.
View our latest analysis for Holista CollTech
How Does Rajen Manickavasagar's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Holista CollTech Limited has a market cap of AU$40m, and reported total annual CEO compensation of AU$319k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$258k. We examined a group of similar sized companies, with market capitalizations of below AU$323m. The median CEO total compensation in that group is AU$387k.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Holista CollTech stands. Talking in terms of the sector, salary represented approximately 84% of total compensation out of all the companies we analysed, while other remuneration made up 16% of the pie. Our data reveals that Holista CollTech allocates salary in line with the wider market.
That means Rajen Manickavasagar receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. You can see, below, how CEO compensation at Holista CollTech has changed over time.
Is Holista CollTech Limited Growing?
Holista CollTech Limited has seen earnings per share (EPS) move positively by an average of 5.4% a year, over the last three years (using a line of best fit). It saw its revenue drop 8.0% over the last year.
I would prefer it if there was revenue growth, but it is good to see EPS growth. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Holista CollTech Limited Been A Good Investment?
With a three year total loss of 3.4%, Holista CollTech Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Rajen Manickavasagar is paid around the same as most CEOs of similar size companies.
We would like to see somewhat stronger per share growth. And it's hard to argue that the returns over the last three years have delighted. So suffice it to say we don't think the compensation is modest. Shifting gears from CEO pay for a second, we've spotted 7 warning signs for Holista CollTech you should be aware of, and 2 of them are a bit unpleasant.
Important note: Holista CollTech 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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.
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. Thank you for reading.
