We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Prescient Therapeutics Limited's (ASX:PTX) CEO For Now

Under the guidance of CEO Steven Yatomi-Clarke, Prescient Therapeutics Limited (ASX:PTX) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 12 November 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Prescient Therapeutics

How Does Total Compensation For Steven Yatomi-Clarke Compare With Other Companies In The Industry?

Our data indicates that Prescient Therapeutics Limited has a market capitalization of AU$180m, and total annual CEO compensation was reported as AU$800k for the year to June 2021. Notably, that's an increase of 25% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at AU$360k.

For comparison, other companies in the industry with market capitalizations below AU$270m, reported a median total CEO compensation of AU$501k. Hence, we can conclude that Steven Yatomi-Clarke is remunerated higher than the industry median. Moreover, Steven Yatomi-Clarke also holds AU$1.4m worth of Prescient Therapeutics stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2021	2020	Proportion (2021)
Salary	AU$360k	AU$392k	45%
Other	AU$440k	AU$247k	55%
Total Compensation	AU$800k	AU$639k	100%

On an industry level, roughly 54% of total compensation represents salary and 46% is other remuneration. In Prescient Therapeutics' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Prescient Therapeutics Limited's Growth

Prescient Therapeutics Limited's earnings per share (EPS) grew 26% per year over the last three years. It achieved revenue growth of 15% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization 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 224% 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...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 2 which don't sit too well with us) 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.

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.

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