Key Insights
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Genetic Signatures to hold its Annual General Meeting on 28th of November
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Salary of AU$391.1k is part of CEO John Melki's total remuneration
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The total compensation is similar to the average for the industry
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Genetic Signatures' three-year loss to shareholders was 73% while its EPS was down 96% over the past three years
The results at Genetic Signatures Limited (ASX:GSS) have been quite disappointing recently and CEO John Melki bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 28th of November. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.
See our latest analysis for Genetic Signatures
Comparing Genetic Signatures Limited's CEO Compensation With The Industry
Our data indicates that Genetic Signatures Limited has a market capitalization of AU$69m, and total annual CEO compensation was reported as AU$597k for the year to June 2023. This means that the compensation hasn't changed much from last year. Notably, the salary which is AU$391.1k, represents most of the total compensation being paid.
On comparing similar-sized companies in the Australia Life Sciences industry with market capitalizations below AU$305m, we found that the median total CEO compensation was AU$587k. This suggests that Genetic Signatures remunerates its CEO largely in line with the industry average. Moreover, John Melki also holds AU$526k worth of Genetic Signatures stock directly under their own name.
| Component | 2023 | 2022 | Proportion (2023) |
| Salary | AU$391k | AU$367k | 66% |
| Other | AU$206k | AU$246k | 34% |
| Total Compensation | AU$597k | AU$613k | 100% |
On an industry level, roughly 79% of total compensation represents salary and 21% is other remuneration. It's interesting to note that Genetic Signatures allocates a smaller portion of compensation to salary in comparison to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Genetic Signatures Limited's Growth
Over the last three years, Genetic Signatures Limited has shrunk its earnings per share by 96% per year. Its revenue is down 40% over the previous year.
Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.