Key Insights

• IODM will host its Annual General Meeting on 2nd of November

• CEO Mark Reilly's total compensation includes salary of AU$248.9k

• Total compensation is similar to the industry average

• IODM's EPS declined by 1.0% over the past three years while total shareholder return over the past three years was 52%

Under the guidance of CEO Mark Reilly, IODM Limited (ASX:IOD) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 2nd of November. We present our case of why we think CEO compensation looks fair.

See our latest analysis for IODM

Comparing IODM Limited's CEO Compensation With The Industry

Our data indicates that IODM Limited has a market capitalization of AU$149m, and total annual CEO compensation was reported as AU$480k for the year to June 2023. We note that's a decrease of 15% compared to last year. We note that the salary of AU$248.9k makes up a sizeable portion of the total compensation received by the CEO.

In comparison with other companies in the Australian Software industry with market capitalizations under AU$315m, the reported median total CEO compensation was AU$519k. This suggests that IODM remunerates its CEO largely in line with the industry average. Moreover, Mark Reilly also holds AU$7.6m worth of IODM stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 59% of total compensation represents salary and 41% is other remuneration. It's interesting to note that IODM allocates a smaller portion of compensation to salary in comparison to the broader industry. 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 IODM Limited's Growth Numbers

IODM Limited saw earnings per share stay pretty flat over the last three years. Its revenue is up 27% over the last year.

The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.