It's Unlikely That The CEO Of Bioasis Technologies Inc. (CVE:BTI) Will See A Huge Pay Rise This Year

In the past three years, the share price of Bioasis Technologies Inc. (CVE:BTI) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 16 December 2021. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Bioasis Technologies

Comparing Bioasis Technologies Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that Bioasis Technologies Inc. has a market capitalization of CA$21m, and reported total annual CEO compensation of CA$268k for the year to February 2021. That's a slight decrease of 5.1% on the prior year. Notably, the salary which is CA$190.3k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under CA$254m, the reported median total CEO compensation was CA$348k. So it looks like Bioasis Technologies compensates Deborah Rathjen in line with the median for the industry.

Component	2021	2020	Proportion (2021)
Salary	CA$190k	CA$192k	71%
Other	CA$78k	CA$91k	29%
Total Compensation	CA$268k	CA$282k	100%

Talking in terms of the industry, salary represented approximately 84% of total compensation out of all the companies we analyzed, while other remuneration made up 16% of the pie. In Bioasis Technologies' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader 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 Bioasis Technologies Inc.'s Growth Numbers

Bioasis Technologies Inc. has seen its earnings per share (EPS) increase by 76% a year over the past three years. It has seen most of its revenue evaporate over the past year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Bioasis Technologies Inc. Been A Good Investment?

With a total shareholder return of -37% over three years, Bioasis Technologies Inc. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 7 warning signs (and 4 which are a bit concerning) in Bioasis Technologies we think you should know about.

Important note: Bioasis Technologies is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.