This Is The Reason Why We Think BioLife Solutions, Inc.'s (NASDAQ:BLFS) CEO Deserves A Bump Up To Their Compensation
The impressive results at BioLife Solutions, Inc. (NASDAQ:BLFS) recently will be great news for shareholders. At the upcoming AGM on 18 June 2021, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.
View our latest analysis for BioLife Solutions
Comparing BioLife Solutions, Inc.'s CEO Compensation With the industry
Our data indicates that BioLife Solutions, Inc. has a market capitalization of US$1.5b, and total annual CEO compensation was reported as US$1.5m for the year to December 2020. We note that's a decrease of 34% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$515k.
On comparing similar companies from the same industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$3.4m. In other words, BioLife Solutions pays its CEO lower than the industry median. Furthermore, Mike Rice directly owns US$10m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2020 | 2019 | Proportion (2020) |
Salary | US$515k | US$530k | 35% |
Other | US$964k | US$1.7m | 65% |
Total Compensation | US$1.5m | US$2.2m | 100% |
On an industry level, around 22% of total compensation represents salary and 78% is other remuneration. It's interesting to note that BioLife Solutions pays out a greater portion of remuneration through salary, compared to the industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
BioLife Solutions, Inc.'s Growth
Over the past three years, BioLife Solutions, Inc. has seen its earnings per share (EPS) grow by 39% per year. In the last year, its revenue is up 56%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has BioLife Solutions, Inc. Been A Good Investment?
Most shareholders would probably be pleased with BioLife Solutions, Inc. for providing a total return of 195% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
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 2 warning signs for BioLife Solutions you should be aware of, and 1 of them doesn't sit too well with us.
Switching gears from BioLife Solutions, 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. 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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