Big payoff for ImpediMed CEO
THE head of a loss-making medical device company founded in Brisbane is now getting paid more than the boss of the Supercheap Auto chain. The catch? He’s helped lead a big payday for investors.
ImpediMed’s chief executive officer Richard Carreon’s remuneration hit $1.68 million this year, up from $1 million. That’s more than the $1.49 million for Peter Birtles of Super Retail Group.
A big difference is a major chunk, almost $719,000 worth, of Mr Carreon’s pay was based on potential long-term bonus shares that still need to clear hurdles, or stock options that only become usable gradually.
ImpediMed, based out of Brisbane and California’s Carlsbad, notched up a deeper $14.8 million loss in the latest profit reporting season. The company has a device, L-Dex, which detects a swelling ailment linked to cancer.
After years of setbacks on its initial listing in 2007, ImpediMed has changed management and recently started receiving positive news. Investors ben- efited, with the stock rising from 19 to 87 in the year.
Morgans analyst Scott Power said key achievements for ImpediMed have included obtaining a key category coding for the device, which helps in health insurance reimburse- ment. Another was getting six top cancer centres signed up to participate in a pilot program.
But investor risks remain, Mr Power warned, including the take up of ImpediMed’s technology being at slower rates than anticipated.
ImpediMed’s loss was deeper than expected, thanks to higher than anticipated sharebased payments and wages. Salaries lifted from $5.1 million to $9.5 million, with staff numbers rising from 30 to 43.
ImpediMed also cited higher “sales and marketing resources” as it prepares for a full commercial launch and Mr Power said this launch, expected in the last quarter of this calendar year, was a key event.
Revenues rose from $3.6 million to $4.9 million.
ImpediMed’s shares have pulled back after hitting an alltime high of $1.24 in August, closing at 99.5 on Friday.