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Should You Worry About Biotron Limited's (ASX:BIT) CEO Pay Cheque?

Simply Wall St

Michelle Miller is the CEO of Biotron Limited (ASX:BIT). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Biotron

How Does Michelle Miller's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Biotron Limited has a market cap of AU$38m, and reported total annual CEO compensation of AU$351k for the year to June 2019. That's just a smallish increase of 2.1% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$307k. We looked at a group of companies with market capitalizations under AU$292m, and the median CEO total compensation was AU$380k.

So Michelle Miller is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see, below, how CEO compensation at Biotron has changed over time.

ASX:BIT CEO Compensation, December 19th 2019

Is Biotron Limited Growing?

On average over the last three years, Biotron Limited has grown earnings per share (EPS) by 41% each year (using a line of best fit). Its revenue is down 34% over last year.

This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Biotron Limited Been A Good Investment?

I think that the total shareholder return of 70%, over three years, would leave most Biotron Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Michelle Miller is paid around the same as most CEOs of similar size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Biotron shares (free trial).

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.

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.

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. Thank you for reading.