Is Invitrocue Limited's (ASX:IVQ) CEO Being Overpaid?
The CEO of Invitrocue Limited (ASX:IVQ) is Steven Fang. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
View our latest analysis for Invitrocue
How Does Steven Fang's Compensation Compare With Similar Sized Companies?
According to our data, Invitrocue Limited has a market capitalization of AU$39m, and pays its CEO total annual compensation worth S$146k. (This is based on the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at S$107k. We examined a group of similar sized companies, with market capitalizations of below AU$278m. The median CEO total compensation in that group is AU$355k.
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 Invitrocue, below.
Is Invitrocue Limited Growing?
On average over the last three years, Invitrocue Limited has grown earnings per share (EPS) by 64% each year (using a line of best fit). In the last year, its revenue is down -20%.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Invitrocue Limited Been A Good Investment?
Invitrocue Limited has not done too badly by shareholders, with a total return of 7.1%, over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
Invitrocue Limited is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggests the pay is modest. While returns over the last few years haven't been top notch, there is nothing to suggest to us that Steven Fang is overcompensated.
It's great to see a company that pays its CEO reasonably, even while growing. But it would be nice if insiders were also buying shares. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Invitrocue.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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. Thank you for reading.
