Key Insights

• Immutep's Annual General Meeting to take place on 23rd of October

• Total pay for CEO Marc Voigt includes AU$440.1k salary

• The overall pay is 36% below the industry average

• Over the past three years, Immutep's EPS grew by 3.8% and over the past three years, the total shareholder return was 1.6%

Shareholders will probably not be disappointed by the robust results at Immutep Limited (ASX:IMM) recently and they will be keeping this in mind as they go into the AGM on 23rd of October. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

View our latest analysis for Immutep

How Does Total Compensation For Marc Voigt Compare With Other Companies In The Industry?

Our data indicates that Immutep Limited has a market capitalization of AU$327m, and total annual CEO compensation was reported as AU$1.1m for the year to June 2023. That's a notable increase of 18% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at AU$440k.

In comparison with other companies in the Australian Biotechs industry with market capitalizations ranging from AU$157m to AU$628m, the reported median CEO total compensation was AU$1.7m. That is to say, Marc Voigt is paid under the industry median. Moreover, Marc Voigt also holds AU$3.1m worth of Immutep stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 60% of total compensation represents salary, while the remainder of 40% is other remuneration. Immutep sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Immutep Limited's Growth Numbers

Immutep Limited's earnings per share (EPS) grew 3.8% per year over the last three years. In the last year, its revenue is down 26%.

We would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see a modest EPS growth at least. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Immutep Limited Been A Good Investment?

With a total shareholder return of 1.6% over three years, Immutep Limited has done okay by shareholders, but there's always room for improvement. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

To Conclude...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for Immutep that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.