In This Article:
In 2005 Geoffrey Kempler was appointed CEO of Alterity Therapeutics Limited (ASX:ATH). 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Alterity Therapeutics
How Does Geoffrey Kempler's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Alterity Therapeutics Limited has a market cap of AU$23m, and is paying total annual CEO compensation of AU$424k. (This number is for the twelve months until June 2019). That's actually a decrease on the year before. We think total compensation is more important but we note that the CEO salary is lower, at AU$396k. We took a group of companies with market capitalizations below AU$292m, and calculated the median CEO total compensation to be AU$372k.
So Geoffrey Kempler 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 Alterity Therapeutics has changed over time.
Is Alterity Therapeutics Limited Growing?
Alterity Therapeutics Limited has reduced its earnings per share by an average of 10% a year, over the last three years (measured with a line of best fit). Its revenue is up 52% over last year.
Investors should note that, over three years, earnings per share are down. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Alterity Therapeutics Limited Been A Good Investment?
Since shareholders would have lost about 75% over three years, some Alterity Therapeutics Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Remuneration for Geoffrey Kempler is close enough to the median pay for a CEO of a similar sized company .
The company cannot boast particularly strong per share growth. And we think the shareholder returns - over three years - have been underwhelming. So many would argue that the CEO is certainly not underpaid. Shareholders may want to check for free if Alterity Therapeutics insiders are buying or selling shares.