We Think Shareholders Will Probably Be Generous With Polarean Imaging plc's (LON:POLX) CEO Compensation

We have been pretty impressed with the performance at Polarean Imaging plc (LON:POLX) recently and CEO Clairis Hullihen deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 13 July 2021. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for Polarean Imaging

How Does Total Compensation For Clairis Hullihen Compare With Other Companies In The Industry?

According to our data, Polarean Imaging plc has a market capitalization of UK£200m, and paid its CEO total annual compensation worth US$330k over the year to December 2020. That's mostly flat as compared to the prior year's compensation. In particular, the salary of US$281.2k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the same industry with market caps ranging from UK£72m to UK£290m, we found that the median CEO total compensation was US$330k. From this we gather that Clairis Hullihen is paid around the median for CEOs in the industry. What's more, Clairis Hullihen holds UK£2.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	US$281k	US$275k	85%
Other	US$48k	US$48k	15%
Total Compensation	US$330k	US$323k	100%

On an industry level, around 62% of total compensation represents salary and 38% is other remuneration. It's interesting to note that Polarean Imaging pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Polarean Imaging plc's Growth Numbers

Polarean Imaging plc's earnings per share (EPS) grew 43% per year over the last three years. It saw its revenue drop 54% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Polarean Imaging plc Been A Good Investment?

Boasting a total shareholder return of 472% over three years, Polarean Imaging plc has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. In saying that, some shareholders may feel that the more important issues to be addressed may be how the management plans to steer the company towards sustainable profitability in the future.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 5 warning signs for Polarean Imaging (2 make us uncomfortable!) that you should be aware of before investing here.

Important note: Polarean Imaging 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.

When trading Polarean Imaging or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.