James Garner became the CEO of Kazia Therapeutics Limited (ASX:KZA) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does James Garner's Compensation Compare With Similar Sized Companies?
According to our data, Kazia Therapeutics Limited has a market capitalization of AU$46m, and paid its CEO total annual compensation worth AU$691k over the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$446k. We looked at a group of companies with market capitalizations under AU$301m, and the median CEO total compensation was AU$379k.
As you can see, James Garner is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Kazia Therapeutics Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Kazia Therapeutics, below.
Is Kazia Therapeutics Limited Growing?
Kazia Therapeutics Limited has increased its earnings per share (EPS) by an average of 11% a year, over the last three years (using a line of best fit). Its revenue is down 40% over last year.
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. It could be important to check this free visual depiction of what analysts expect for the future.
Has Kazia Therapeutics Limited Been A Good Investment?
With a three year total loss of 27%, Kazia Therapeutics Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by Kazia Therapeutics Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. Shareholders may want to check for free if Kazia 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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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. Thank you for reading.