In This Article:
Sean Tham is the CEO of iSentric Limited (ASX:ICU). 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. The aim of all this is to consider the appropriateness of CEO pay levels.
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View our latest analysis for iSentric
How Does Sean Tham's Compensation Compare With Similar Sized Companies?
Our data indicates that iSentric Limited is worth AU$1.1m, and total annual CEO compensation is AU$272k. (This is based on the year to June 2018). Notably, the salary of AU$272k is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below AU$289m, and calculated the median CEO total compensation to be AU$357k.
So Sean Tham receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at iSentric has changed over time.
Is iSentric Limited Growing?
On average over the last three years, iSentric Limited has shrunk earnings per share by 48% each year (measured with a line of best fit). Its revenue is down -11% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 iSentric Limited Been A Good Investment?
Since shareholders would have lost about 95% over three years, some iSentric Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Sean Tham is paid around the same as most CEOs of similar size companies.
The company isn't growing EPS, and shareholder returns have been disappointing. Few would argue that it's wise for the company to pay any more, before returns improve. So you may want to check if insiders are buying iSentric shares with their own money (free access).