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A Quick Analysis On Yourgene Health's (LON:YGEN) CEO Salary

Simply Wall St
·3 min read

Lyn Rees became the CEO of Yourgene Health Plc (LON:YGEN) in 2018, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for Yourgene Health

How Does Total Compensation For Lyn Rees Compare With Other Companies In The Industry?

At the time of writing, our data shows that Yourgene Health Plc has a market capitalization of UK£88m, and reported total annual CEO compensation of UK£220k for the year to March 2020. We note that's an increase of 8.5% above last year. We note that the salary portion, which stands at UK£190.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under UK£145m, the reported median total CEO compensation was UK£235k. So it looks like Yourgene Health compensates Lyn Rees in line with the median for the industry. Furthermore, Lyn Rees directly owns UK£127k worth of shares in the company.

Component

2020

2019

Proportion (2020)

Salary

UK£190k

UK£122k

86%

Other

UK£30k

UK£81k

14%

Total Compensation

UK£220k

UK£203k

100%

Talking in terms of the industry, salary represented approximately 62% of total compensation out of all the companies we analyzed, while other remuneration made up 38% of the pie. Yourgene Health pays out 86% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation
ceo-compensation

A Look at Yourgene Health Plc's Growth Numbers

Yourgene Health Plc has seen its earnings per share (EPS) increase by 81% a year over the past three years. In the last year, its revenue is up 34%.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 Yourgene Health Plc Been A Good Investment?

Boasting a total shareholder return of 147% over three years, Yourgene Health 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.

To Conclude...

As we noted earlier, Yourgene Health pays its CEO in line with similar-sized companies belonging to the same industry. Few would be critical of the leadership, since returns have been juicy and EPS are moving in the right direction. So one could argue that CEO compensation is quite modest, if you consider company performance! Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Yourgene Health that you should be aware of before investing.

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.

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.

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