Is Bioventix PLC (LON:BVXP) Overpaying Its CEO?
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Peter Harrison is the CEO of Bioventix PLC (LON:BVXP). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Bioventix
How Does Peter Harrison's Compensation Compare With Similar Sized Companies?
Our data indicates that Bioventix PLC is worth UK£194m, and total annual CEO compensation is UK£358k. (This figure is for the year to June 2018). We think total compensation is more important but we note that the CEO salary is lower, at UK£165k. We examined companies with market caps from UK£79m to UK£315m, and discovered that the median CEO total compensation of that group was UK£540k.
A first glance this seems like a real positive for shareholders, since Peter Harrison is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Bioventix, below.
Is Bioventix PLC Growing?
Over the last three years Bioventix PLC has grown its earnings per share (EPS) by an average of 22% per year (using a line of best fit). In the last year, its revenue is up 4.6%.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.
Has Bioventix PLC Been A Good Investment?
Boasting a total shareholder return of 343% over three years, Bioventix PLC 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.
In Summary...
It looks like Bioventix PLC pays its CEO less than similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Peter Harrison deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. But it is even better if company insiders are also buying shares with their own money. So you may want to check if insiders are buying Bioventix shares with their own money (free access).
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.
