We Discuss Why MYCELX Technologies Corporation's (LON:MYX) CEO Compensation May Be Closely Reviewed

The results at MYCELX Technologies Corporation (LON:MYX) have been quite disappointing recently and CEO Connie Mixon bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 07 July 2021. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

See our latest analysis for MYCELX Technologies

Comparing MYCELX Technologies Corporation's CEO Compensation With the industry

Our data indicates that MYCELX Technologies Corporation has a market capitalization of UK£8.8m, and total annual CEO compensation was reported as US$332k for the year to December 2020. That's a notable decrease of 35% on last year. We note that the salary portion, which stands at US$315.8k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below UK£145m, reported a median total CEO compensation of US$304k. So it looks like MYCELX Technologies compensates Connie Mixon in line with the median for the industry. Furthermore, Connie Mixon directly owns UK£1.2m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	US$316k	US$355k	95%
Other	US$17k	US$160k	5%
Total Compensation	US$332k	US$515k	100%

On an industry level, around 66% of total compensation represents salary and 34% is other remuneration. MYCELX Technologies pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

MYCELX Technologies Corporation's Growth

MYCELX Technologies Corporation has reduced its earnings per share by 92% a year over the last three years. In the last year, its revenue is down 40%.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has MYCELX Technologies Corporation Been A Good Investment?

With a total shareholder return of -60% over three years, MYCELX Technologies Corporation shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Connie receives almost all of their compensation through a salary. Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for MYCELX Technologies (of which 1 is a bit concerning!) that you should know about in order to have a holistic understanding of the stock.

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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