In 2009 Steve Carter was appointed CEO of Suda Pharmaceuticals Ltd (ASX:SUD). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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.
See our latest analysis for Suda Pharmaceuticals
How Does Steve Carter's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Suda Pharmaceuticals Ltd has a market cap of AU$12m, and is paying total annual CEO compensation of AU$383k. (This number is for the twelve months until June 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$348k. We looked at a group of companies with market capitalizations under AU$280m, and the median CEO total compensation was AU$355k.
So Steve Carter receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Suda Pharmaceuticals, below.
Is Suda Pharmaceuticals Ltd Growing?
Suda Pharmaceuticals Ltd has reduced its earnings per share by an average of 20% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 65%.
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 shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Suda Pharmaceuticals Ltd Been A Good Investment?
With a three year total loss of 81%, Suda Pharmaceuticals Ltd would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Remuneration for Steve Carter 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. Whatever your view on compensation, you might want to check if insiders are buying or selling Suda Pharmaceuticals shares (free trial).