Yahoo Finance Is ImmuPharma plc's (LON:IMM) CEO Being Overpaid?
Dimitri Dimitriou is the CEO of ImmuPharma plc (LON:IMM). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
See our latest analysis for ImmuPharma
How Does Dimitri Dimitriou's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that ImmuPharma plc has a market cap of UK£23m, and reported total annual CEO compensation of UK£305k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at UK£244k. We examined a group of similar sized companies, with market capitalizations of below UK£160m. The median CEO total compensation in that group is UK£267k.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of ImmuPharma. Talking in terms of the sector, salary represented approximately 72% of total compensation out of all the companies we analysed, while other remuneration made up 28% of the pie. Our data reveals that ImmuPharma allocates salary in line with the wider market.
So Dimitri Dimitriou receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance. You can see, below, how CEO compensation at ImmuPharma has changed over time.
Is ImmuPharma plc Growing?
ImmuPharma plc has reduced its earnings per share by an average of 3.8% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down 4.1%.
Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.
Has ImmuPharma plc Been A Good Investment?
Since shareholders would have lost about 76% over three years, some ImmuPharma plc shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Remuneration for Dimitri Dimitriou is close enough to the median pay for a CEO of a similar sized company .
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. Taking a breather from CEO compensation, we've spotted 5 warning signs for ImmuPharma (of which 1 is concerning!) you should know about in order to have a holistic understanding of the stock.
Important note: ImmuPharma may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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