Yahoo Finance What Can We Make Of Biotron's (ASX:BIT) CEO Compensation?
The CEO of Biotron Limited (ASX:BIT) is Michelle Miller, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Biotron.
Check out our latest analysis for Biotron
How Does Total Compensation For Michelle Miller Compare With Other Companies In The Industry?
Our data indicates that Biotron Limited has a market capitalization of AU$58m, and total annual CEO compensation was reported as AU$381k for the year to June 2020. That's a notable increase of 8.6% on last year. In particular, the salary of AU$323.3k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the industry with market capitalizations below AU$271m, reported a median total CEO compensation of AU$433k. This suggests that Biotron remunerates its CEO largely in line with the industry average. Moreover, Michelle Miller also holds AU$259k worth of Biotron stock directly under their own name.
Component | 2020 | 2019 | Proportion (2020) |
Salary | AU$323k | AU$307k | 85% |
Other | AU$58k | AU$44k | 15% |
Total Compensation | AU$381k | AU$351k | 100% |
On an industry level, roughly 65% of total compensation represents salary and 35% is other remuneration. It's interesting to note that Biotron pays out a greater portion of remuneration through salary, compared to the industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Biotron Limited's Growth Numbers
Over the past three years, Biotron Limited has seen its earnings per share (EPS) grow by 8.2% per year. In the last year, its revenue is down 25%.
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. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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.
Has Biotron Limited Been A Good Investment?
Most shareholders would probably be pleased with Biotron Limited for providing a total return of 235% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
As previously discussed, Michelle is compensated close to the median for companies of its size, and which belong to the same industry. However, the company's EPS growth numbers over the last three years is not that impressive. Meanwhile, shareholder returns have remained positive over the same time frame. We would like to see EPS growth from the business, although we wouldn't say the CEO compensation is high.
CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 4 warning signs for Biotron (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from Biotron, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. 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.
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