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Increases to CEO Compensation Might Be Put On Hold For Now at Bio-Techne Corporation (NASDAQ:TECH)

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CEO Chuck Kummeth has done a decent job of delivering relatively good performance at Bio-Techne Corporation (NASDAQ:TECH) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 28 October 2021. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Bio-Techne

Comparing Bio-Techne Corporation's CEO Compensation With the industry

Our data indicates that Bio-Techne Corporation has a market capitalization of US$20b, and total annual CEO compensation was reported as US$16m for the year to June 2021. That's a notable increase of 38% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.1m.

On comparing similar companies in the industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$9.0m. This suggests that Chuck Kummeth is paid more than the median for the industry. What's more, Chuck Kummeth holds US$98m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2021

2020

Proportion (2021)

Salary

US$1.1m

US$1.1m

7%

Other

US$15m

US$10m

93%

Total Compensation

US$16m

US$11m

100%

Speaking on an industry level, nearly 21% of total compensation represents salary, while the remainder of 79% is other remuneration. Bio-Techne pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
ceo-compensation

Bio-Techne Corporation's Growth

Bio-Techne Corporation has seen its earnings per share (EPS) increase by 2.1% a year over the past three years. Its revenue is up 26% over the last year.

We like the look of the strong year-on-year improvement in revenue. Combined with modest EPS growth, we get a good impression of the company. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Bio-Techne Corporation Been A Good Investment?

Boasting a total shareholder return of 181% over three years, Bio-Techne Corporation has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 3 warning signs for Bio-Techne that investors should look into moving forward.

Switching gears from Bio-Techne, 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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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