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Is Biotron Limited (ASX:BIT) Overpaying Its CEO?

Simply Wall St

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The CEO of Biotron Limited (ASX:BIT) is Michelle Miller. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Biotron

How Does Michelle Miller's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Biotron Limited has a market cap of AU$42m, and is paying total annual CEO compensation of AU$344k. (This number is for the twelve months until June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$300k. We looked at a group of companies with market capitalizations under AU$290m, and the median CEO total compensation was AU$357k.

That means Michelle Miller receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Biotron, below.

ASX:BIT CEO Compensation, May 31st 2019

Is Biotron Limited Growing?

Over the last three years Biotron Limited has grown its earnings per share (EPS) by an average of 40% per year (using a line of best fit). It saw its revenue drop -67% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Biotron Limited Been A Good Investment?

Biotron Limited has generated a total shareholder return of 14% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Michelle Miller is paid around the same as most CEOs of similar size companies.

The company is growing EPS but shareholder returns have been sound but not amazing. So upon reflection one could argue that the CEO pay is quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Biotron.

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

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.