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

The CEO of Bioventix PLC (LON:BVXP) is Peter Harrison. 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 – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Bioventix

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

Our data indicates that Bioventix PLC is worth UK£197m, and total annual CEO compensation is UK£358k. (This number is for the twelve months until June 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at UK£165k. We examined companies with market caps from UK£82m to UK£329m, and discovered that the median CEO total compensation of that group was UK£537k.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.

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

AIM:BVXP CEO Compensation, August 7th 2019
AIM:BVXP CEO Compensation, August 7th 2019

Is Bioventix PLC Growing?

Over the last three years Bioventix PLC has grown its earnings per share (EPS) by an average of 22% per year (using a line of best fit). Its revenue is up 4.6% over 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.

Has Bioventix PLC Been A Good Investment?

Boasting a total shareholder return of 346% over three years, Bioventix PLC has done well by shareholders. 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.

In Summary…

It looks like Bioventix PLC pays its CEO less than similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Peter Harrison deserves a raise!

Most shareholders like to see a modestly paid CEO combined with strong performance by the company. It would be even more positive if company insiders are buying shares. Shareholders may want to check for free if Bioventix insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.