Shareholders Would Not Be Objecting To Prescient Therapeutics Limited's (ASX:PTX) CEO Compensation And Here's Why

It would be hard to discount the role that CEO Steven Yatomi-Clarke has played in delivering the impressive results at Prescient Therapeutics Limited (ASX:PTX) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 29 November 2022. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for Prescient Therapeutics

Comparing Prescient Therapeutics Limited's CEO Compensation With The Industry

According to our data, Prescient Therapeutics Limited has a market capitalization of AU$104m, and paid its CEO total annual compensation worth AU$771k over the year to June 2022. We note that's a small decrease of 3.6% on last year. In particular, the salary of AU$391.8k, makes up a fairly large portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under AU$303m, the reported median total CEO compensation was AU$654k. From this we gather that Steven Yatomi-Clarke is paid around the median for CEOs in the industry. Furthermore, Steven Yatomi-Clarke directly owns AU$1.3m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	AU$392k	AU$360k	51%
Other	AU$379k	AU$440k	49%
Total Compensation	AU$771k	AU$800k	100%

On an industry level, around 49% of total compensation represents salary and 51% is other remuneration. Our data reveals that Prescient Therapeutics allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Prescient Therapeutics Limited's Growth

Prescient Therapeutics Limited has seen its earnings per share (EPS) increase by 25% a year over the past three years. In the last year, its revenue is up 59%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Prescient Therapeutics Limited Been A Good Investment?

Most shareholders would probably be pleased with Prescient Therapeutics Limited for providing a total return of 45% 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...

Some shareholders will probably be more lenient on CEO compensation in the upcoming AGM given the pleasing performance of the company recently. However, despite the strong growth in earnings and share price growth, the focus for shareholders would be how the company plans to steer the company towards sustainable profitability in the near future.

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. We did our research and identified 4 warning signs (and 1 which is potentially serious) in Prescient Therapeutics we think you should know about.

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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.