Stock Analysis

What Did Yourgene Health's (LON:YGEN) CEO Take Home Last Year?

AIM:YGEN
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This article will reflect on the compensation paid to Lyn Rees who has served as CEO of Yourgene Health Plc (LON:YGEN) since 2018. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Yourgene Health.

See 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£103m, and paid its CEO total annual compensation worth UK£220k over the year to March 2020. That's a notable increase of 8.5% on last year. In particular, the salary of UK£190.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below UK£146m, we found that the median total CEO compensation was UK£235k. This suggests that Yourgene Health remunerates its CEO largely in line with the industry average. Furthermore, Lyn Rees directly owns UK£148k worth of shares in the company.

Component20202019Proportion (2020)
Salary UK£190k UK£122k 86%
Other UK£30k UK£81k 14%
Total CompensationUK£220k UK£203k100%

On an industry level, around 62% of total compensation represents salary and 38% is other remuneration. It's interesting to note that Yourgene Health pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation
AIM:YGEN CEO Compensation January 27th 2021

A Look at Yourgene Health Plc's Growth Numbers

Over the past three years, Yourgene Health Plc has seen its earnings per share (EPS) grow by 81% per year. In the last year, its revenue is up 34%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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?

Most shareholders would probably be pleased with Yourgene Health Plc for providing a total return of 185% over three years. 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.

To Conclude...

As we noted earlier, Yourgene Health pays its CEO in line with similar-sized companies belonging to the same industry. Investors would surely be happy to see that returns have been great, and that EPS is up. Indeed, many might consider that Lyn is compensated rather modestly, given the solid company performance! Also, such solid returns might lead to shareholders warming to the idea of a bump in pay.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Yourgene Health that you should be aware of before investing.

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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