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Is ImmuPharma plc's (LON:IMM) CEO Pay Fair?

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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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for ImmuPharma

How Does Dimitri Dimitriou's Compensation Compare With Similar Sized Companies?

Our data indicates that ImmuPharma plc is worth UK£14m, and total annual CEO compensation is UK£308k. (This number is for the twelve months until December 2017). While we always look at total compensation first, we note that the salary component is less, at UK£247k. We took a group of companies with market capitalizations below UK£153m, and calculated the median CEO total compensation to be UK£238k.

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That means Dimitri Dimitriou 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 ImmuPharma has changed from year to year.

AIM:IMM CEO Compensation, May 3rd 2019
AIM:IMM CEO Compensation, May 3rd 2019

Is ImmuPharma plc Growing?

On average over the last three years, ImmuPharma plc has shrunk earnings per share by 6.4% each year (measured with a line of best fit). It saw its revenue drop -45% over the last year.

Few shareholders would be pleased to read that earnings per share are lower over 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. It could be important to check this free visual depiction of what analysts expect for the future.

Has ImmuPharma plc Been A Good Investment?

With a three year total loss of 63%, ImmuPharma plc would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Dimitri Dimitriou is paid around the same as most CEOs of similar size companies.

After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Few would argue that it's wise for the company to pay any more, before returns improve. Shareholders may want to check for free if ImmuPharma insiders are buying or selling shares.

If you want to buy a stock that is better than ImmuPharma, this free list of high return, low debt companies is a great place to look.

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.