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We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Prescient Therapeutics Limited's (ASX:PTX) CEO For Now

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Under the guidance of CEO Steven Yatomi-Clarke, Prescient Therapeutics Limited (ASX:PTX) 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 12 November 2021. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Prescient Therapeutics

Comparing Prescient Therapeutics Limited's CEO Compensation With the industry

According to our data, Prescient Therapeutics Limited has a market capitalization of AU$180m, and paid its CEO total annual compensation worth AU$800k over the year to June 2021. We note that's an increase of 25% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at AU$360k.

On comparing similar-sized companies in the industry with market capitalizations below AU$270m, we found that the median total CEO compensation was AU$501k. Accordingly, our analysis reveals that Prescient Therapeutics Limited pays Steven Yatomi-Clarke north of the industry median. What's more, Steven Yatomi-Clarke holds AU$1.4m 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

AU$360k

AU$392k

45%

Other

AU$440k

AU$247k

55%

Total Compensation

AU$800k

AU$639k

100%

Talking in terms of the industry, salary represented approximately 54% of total compensation out of all the companies we analyzed, while other remuneration made up 46% of the pie. It's interesting to note that Prescient Therapeutics allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ceo-compensation

Prescient Therapeutics Limited's Growth

Prescient Therapeutics Limited's earnings per share (EPS) grew 26% per year over the last three years. In the last year, its revenue is up 15%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Prescient Therapeutics Limited Been A Good Investment?

Boasting a total shareholder return of 224% over three years, Prescient Therapeutics Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for Prescient Therapeutics (2 are potentially serious!) that you should be aware of before investing here.

Switching gears from Prescient Therapeutics, 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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