In 2009 Rajen Marnickavasagar was appointed CEO of Holista CollTech Limited (ASX:HCT). 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Holista CollTech

How Does Rajen Marnickavasagar's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Holista CollTech Limited has a market cap of AU$16m, and is paying total annual CEO compensation of AU$319k. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$258k. We took a group of companies with market capitalizations below AU$295m, and calculated the median CEO total compensation to be AU$357k.

That means Rajen Marnickavasagar 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.

You can see, below, how CEO compensation at Holista CollTech has changed over time.

Is Holista CollTech Limited Growing?

Over the last three years Holista CollTech Limited has shrunk its earnings per share by an average of 65% per year (measured with a line of best fit). It achieved revenue growth of 2.5% over the last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Holista CollTech Limited Been A Good Investment?

With a three year total loss of 56%, Holista CollTech Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Rajen Marnickavasagar is paid around the same as most CEOs of similar size companies.

The company isn't growing EPS, and shareholder returns have been disappointing. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. So you may want to check if insiders are buying Holista CollTech shares with their own money (free access).