In This Article:
Paul Anderson is the CEO of Orthocell Limited (ASX:OCC). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Orthocell
How Does Paul Anderson's Compensation Compare With Similar Sized Companies?
According to our data, Orthocell Limited has a market capitalization of AU$62m, and paid its CEO total annual compensation worth AU$582k over the year to June 2019. That's actually a decrease on the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$365k. We examined a group of similar sized companies, with market capitalizations of below AU$298m. The median CEO total compensation in that group is AU$375k.
Thus we can conclude that Paul Anderson receives more in total compensation than the median of a group of companies in the same market, and of similar size to Orthocell Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Orthocell, below.
Is Orthocell Limited Growing?
On average over the last three years, Orthocell Limited has shrunk earnings per share by 9.3% each year (measured with a line of best fit). Its revenue is up 53% over last year.
Investors should note that, over three years, earnings per share are down. But on the other hand, revenue growth is strong, suggesting a brighter future. 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. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Orthocell Limited Been A Good Investment?
Given the total loss of 7.1% over three years, many shareholders in Orthocell Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared the total CEO remuneration paid by Orthocell Limited, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.