In This Article:
Paul Roberts is the CEO of Predictive Discovery Limited (ASX:PDI), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also assess whether Predictive Discovery pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for Predictive Discovery
Comparing Predictive Discovery Limited's CEO Compensation With the industry
Our data indicates that Predictive Discovery Limited has a market capitalization of AU$58m, and total annual CEO compensation was reported as AU$205k for the year to June 2020. That is, the compensation was roughly the same as last year. It is worth noting that the CEO compensation consists entirely of the salary, worth AU$205k.
On comparing similar-sized companies in the industry with market capitalizations below AU$263m, we found that the median total CEO compensation was AU$309k. Accordingly, Predictive Discovery pays its CEO under the industry median. What's more, Paul Roberts holds AU$300k worth of shares in the company in their own name.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | AU$205k | AU$205k | 100% |
| Other | - | - | - |
| Total Compensation | AU$205k | AU$205k | 100% |
On an industry level, around 70% of total compensation represents salary and 30% is other remuneration. Speaking on a company level, Predictive Discovery prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Predictive Discovery Limited's Growth Numbers
Predictive Discovery Limited has seen its earnings per share (EPS) increase by 38% a year over the past three years. In the last year, its revenue is down 37%.
Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Predictive Discovery Limited Been A Good Investment?
We think that the total shareholder return of 52%, over three years, would leave most Predictive Discovery Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Predictive Discovery pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we touched on above, Predictive Discovery Limited is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Since EPS growth is heading in a positive direction; many would agree with our assessment that the pay is modest. Plus, we can't ignore the impressive shareholder returns, and won't be surprised if some shareholders were to reward such excellent all-around performance with a raise.