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Jim Millen has been the CEO of Physiomics Plc (LON:PYC) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Physiomics.
Comparing Physiomics Plc's CEO Compensation With the industry
Our data indicates that Physiomics Plc has a market capitalization of UK£6.3m, and total annual CEO compensation was reported as UK£136k for the year to June 2020. We note that's a small decrease of 4.8% on last year. In particular, the salary of UK£123.5k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the industry with market capitalizations below UK£153m, we found that the median total CEO compensation was UK£147k. This suggests that Physiomics remunerates its CEO largely in line with the industry average. Moreover, Jim Millen also holds UK£90k worth of Physiomics stock directly under their own name.
Talking in terms of the industry, salary represented approximately 49% of total compensation out of all the companies we analyzed, while other remuneration made up 51% of the pie. It's interesting to note that Physiomics pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Physiomics Plc's Growth
Over the past three years, Physiomics Plc has seen its earnings per share (EPS) grow by 74% per year. Its revenue is up 7.5% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Physiomics Plc Been A Good Investment?
Most shareholders would probably be pleased with Physiomics Plc for providing a total return of 567% over three years. 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.
As we touched on above, Physiomics Plc is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Few would be critical of the leadership, since returns have been juicy and EPS are moving in the right direction. Indeed, many might consider that Jim is compensated rather modestly, given the solid company performance! In fact, shareholders might even think the CEO deserves a raise as a reward due to the fantastic returns generated.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 5 warning signs for Physiomics you should be aware of, and 1 of them is a bit unpleasant.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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