In This Article:
Ian Kadish became the CEO of Integral Diagnostics Limited (ASX:IDX) in 2017. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Integral Diagnostics
How Does Ian Kadish's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Integral Diagnostics Limited has a market cap of AU$671m, and reported total annual CEO compensation of AU$711k for the year to June 2018. We think total compensation is more important but we note that the CEO salary is lower, at AU$489k. We looked at a group of companies with market capitalizations from AU$291m to AU$1.2b, and the median CEO total compensation was AU$1.0m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Integral Diagnostics, below.
Is Integral Diagnostics Limited Growing?
Over the last three years Integral Diagnostics Limited has grown its earnings per share (EPS) by an average of 9.3% per year (using a line of best fit). It achieved revenue growth of 23% over the last year.
I would argue that the modest growth in revenue is a notable positive. And the improvement in earnings per share is modest but respectable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has Integral Diagnostics Limited Been A Good Investment?
Most shareholders would probably be pleased with Integral Diagnostics Limited for providing a total return of 216% over three years. 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.
In Summary...
It appears that Integral Diagnostics Limited remunerates its CEO below most similar sized companies.
Ian Kadish is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. Whatever your view on compensation, you might want to check if insiders are buying or selling Integral Diagnostics shares (free trial).