Does IRLAB Therapeutics AB (publ)'s (STO:IRLAB A) CEO Pay Reflect Performance?
Nicholas Waters became the CEO of IRLAB Therapeutics AB (publ) (STO:IRLAB A) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for IRLAB Therapeutics
How Does Nicholas Waters's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that IRLAB Therapeutics AB (publ) has a market cap of kr1.2b, and reported total annual CEO compensation of kr2.1m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at kr1.5m. We took a group of companies with market capitalizations below kr1.9b, and calculated the median CEO total compensation to be kr2.0m.
That means Nicholas Waters receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at IRLAB Therapeutics has changed from year to year.
Is IRLAB Therapeutics AB (publ) Growing?
On average over the last three years, IRLAB Therapeutics AB (publ) has shrunk earnings per share by 10% each year (measured with a line of best fit). It achieved revenue growth of 129% over the last year.
The reduction in earnings per share, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. You might want to check this free visual report on analyst forecasts for future earnings.
Has IRLAB Therapeutics AB (publ) Been A Good Investment?
I think that the total shareholder return of 151%, over three years, would leave most IRLAB Therapeutics AB (publ) shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Remuneration for Nicholas Waters is close enough to the median pay for a CEO of a similar sized company .
The company isn't showing particularly great growth, but shareholder returns have been pleasing. So all things considered I'd venture that the CEO pay is appropriate. Shareholders may want to check for free if IRLAB Therapeutics insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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