We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Yourgene Health Plc's (LON:YGEN) CEO For Now

Under the guidance of CEO Lyn Rees, Yourgene Health Plc (LON:YGEN) 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 28 September 2021. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Yourgene Health

How Does Total Compensation For Lyn Rees Compare With Other Companies In The Industry?

According to our data, Yourgene Health Plc has a market capitalization of UK£107m, and paid its CEO total annual compensation worth UK£299k over the year to March 2021. That's a notable increase of 36% on last year. Notably, the salary which is UK£237.5k, represents most of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below UK£147m, we found that the median total CEO compensation was UK£219k. Accordingly, our analysis reveals that Yourgene Health Plc pays Lyn Rees north of the industry median. What's more, Lyn Rees holds UK£153k worth of shares in the company in their own name.

Component	2021	2020	Proportion (2021)
Salary	UK£238k	UK£190k	79%
Other	UK£62k	UK£30k	21%
Total Compensation	UK£299k	UK£220k	100%

On an industry level, roughly 77% of total compensation represents salary and 23% is other remuneration. Our data reveals that Yourgene Health allocates salary more or less in line with the wider market. 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.

Yourgene Health Plc's Growth

Yourgene Health Plc's earnings per share (EPS) grew 32% per year over the last three years. In the last year, its revenue is up 10%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Yourgene Health Plc Been A Good Investment?

Yourgene Health Plc has served shareholders reasonably well, with a total return of 13% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

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. 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 compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Yourgene Health that investors should think about before committing capital to this 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. 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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