What Can We Conclude About Biotron's (ASX:BIT) CEO Pay?

The CEO of Biotron Limited (ASX:BIT) is Michelle Miller, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Biotron pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Biotron

Comparing Biotron Limited's CEO Compensation With the industry

According to our data, Biotron Limited has a market capitalization of AU$56m, and paid its CEO total annual compensation worth AU$381k over the year to June 2020. That's a notable increase of 8.6% on last year. Notably, the salary which is AU$323.3k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under AU$263m, the reported median total CEO compensation was AU$408k. From this we gather that Michelle Miller is paid around the median for CEOs in the industry. Moreover, Michelle Miller also holds AU$253k worth of Biotron stock directly under their own name.

On an industry level, around 65% of total compensation represents salary and 35% is other remuneration. According to our research, Biotron has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Biotron Limited's Growth Numbers

Biotron Limited has seen its earnings per share (EPS) increase by 8.2% a year over the past three years. In the last year, its revenue is down 25%.

We generally like to see a little revenue growth, but the modest EPSgrowth gives us some relief. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Biotron Limited Been A Good Investment?

Most shareholders would probably be pleased with Biotron Limited for providing a total return of 227% over three years. 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...

As previously discussed, Michelle is compensated close to the median for companies of its size, and which belong to the same industry. However, the company's EPS growth numbers over the last three years is not that impressive. On the other hand, shareholder returns over the same period have been very healthy. There is room for improved company performance, but we don't see the CEO compensation as a big issue here.

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 4 warning signs for Biotron you should be aware of, and 1 of them is potentially serious.

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

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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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