Is Bioventix PLC’s (LON:BVXP) CEO Pay Fair?

Peter Harrison is the CEO of Bioventix PLC (LON:BVXP). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. 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.

View our latest analysis for Bioventix

How Does Peter Harrison’s Compensation Compare With Similar Sized Companies?

According to our data, Bioventix PLC has a market capitalization of UK£207m, and paid its CEO total annual compensation worth UK£322k over the year to June 2019. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at UK£175k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£77m to UK£309m. The median total CEO compensation was UK£458k.

So Peter Harrison 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 a visual representation of the CEO compensation at Bioventix, below.

AIM:BVXP CEO Compensation, February 25th 2020
AIM:BVXP CEO Compensation, February 25th 2020

Is Bioventix PLC Growing?

On average over the last three years, Bioventix PLC has grown earnings per share (EPS) by 15% each year (using a line of best fit). It achieved revenue growth of 6.2% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.

Has Bioventix PLC Been A Good Investment?

Boasting a total shareholder return of 190% over three years, Bioventix PLC has done well by shareholders. 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…

Remuneration for Peter Harrison is close enough to the median pay for a CEO of a similar sized company .

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Bioventix (free visualization of insider trades).

Important note: Bioventix may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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.

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