Yahoo Finance This Is Why We Think Biotron Limited's (ASX:BIT) CEO Might Get A Pay Rise Approved By Shareholders
Key Insights
Biotron will host its Annual General Meeting on 22nd of November
Total pay for CEO Michelle Miller includes AU$341.5k salary
Total compensation is 34% below industry average
Biotron's EPS grew by 20% over the past three years while total shareholder return over the past three years was 23%
The decent performance at Biotron Limited (ASX:BIT) recently will please most shareholders as they go into the AGM coming up on 22nd of November. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. Here is our take on why we think CEO compensation is fair and may even warrant a raise.
See our latest analysis for Biotron
How Does Total Compensation For Michelle Miller Compare With Other Companies In The Industry?
According to our data, Biotron Limited has a market capitalization of AU$95m, and paid its CEO total annual compensation worth AU$387k over the year to June 2023. This means that the compensation hasn't changed much from last year. In particular, the salary of AU$341.5k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the Australian Biotechs industry with market capitalizations below AU$306m, reported a median total CEO compensation of AU$585k. Accordingly, Biotron pays its CEO under the industry median. Furthermore, Michelle Miller directly owns AU$398k worth of shares in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | AU$341k | AU$329k | 88% |
Other | AU$46k | AU$52k | 12% |
Total Compensation | AU$387k | AU$380k | 100% |
Speaking on an industry level, nearly 60% of total compensation represents salary, while the remainder of 40% is other remuneration. According to our research, Biotron has allocated a higher percentage of pay to salary in comparison to the wider 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.
Biotron Limited's Growth
Over the past three years, Biotron Limited has seen its earnings per share (EPS) grow by 20% per year. Its revenue is down 8.2% over the previous year.
This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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?
With a total shareholder return of 23% over three years, Biotron Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
While the company seems to be headed in the right direction performance-wise, there's always room for improvement. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 5 warning signs for Biotron you should be aware of, and 3 of them are a bit concerning.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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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.
