We Think Shareholders Are Less Likely To Approve A Large Pay Rise For BioSyent Inc.'s (CVE:RX) CEO For Now
Key Insights
- BioSyent's Annual General Meeting to take place on 15th of May
- Salary of CA$369.8k is part of CEO René Goehrum's total remuneration
- The total compensation is 68% higher than the average for the industry
- BioSyent's total shareholder return over the past three years was 33% while its EPS grew by 9.2% over the past three years
Under the guidance of CEO René Goehrum, BioSyent Inc. (CVE:RX) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 15th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
View our latest analysis for BioSyent
How Does Total Compensation For René Goehrum Compare With Other Companies In The Industry?
Our data indicates that BioSyent Inc. has a market capitalization of CA$123m, and total annual CEO compensation was reported as CA$762k for the year to December 2024. That's mostly flat as compared to the prior year's compensation. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$370k.
In comparison with other companies in the Canadian Pharmaceuticals industry with market capitalizations under CA$278m, the reported median total CEO compensation was CA$453k. Accordingly, our analysis reveals that BioSyent Inc. pays René Goehrum north of the industry median. Furthermore, René Goehrum directly owns CA$11m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | CA$370k | CA$357k | 49% |
| Other | CA$392k | CA$391k | 51% |
| Total Compensation | CA$762k | CA$748k | 100% |
On an industry level, around 70% of total compensation represents salary and 30% is other remuneration. BioSyent sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
BioSyent Inc.'s Growth
BioSyent Inc. has seen its earnings per share (EPS) increase by 9.2% a year over the past three years. In the last year, its revenue is up 11%.
We think the revenue growth is good. And, while modest, the EPS growth is noticeable. So while performance isn't amazing, we think it really does seem quite respectable. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has BioSyent Inc. Been A Good Investment?
Boasting a total shareholder return of 33% over three years, BioSyent Inc. has done well by shareholders. 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...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
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 identified 2 warning signs for BioSyent (1 shouldn't be ignored!) that you should be aware of before investing here.
Important note: BioSyent 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.
Valuation is complex, but we're here to simplify it.
Discover if BioSyent might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.