Biome Technologies plc's (LON:BIOM) CEO Will Probably Find It Hard To See A Huge Raise This Year

Key Insights

• Biome Technologies' Annual General Meeting to take place on 29th of May
• Salary of UK£208.0k is part of CEO Paul Mines's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, Biome Technologies' EPS grew by 17% and over the past three years, the total loss to shareholders 80%

The underwhelming share price performance of Biome Technologies plc (LON:BIOM) in the past three years would have disappointed many shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 29th of May. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View our latest analysis for Biome Technologies

How Does Total Compensation For Paul Mines Compare With Other Companies In The Industry?

At the time of writing, our data shows that Biome Technologies plc has a market capitalization of UK£2.7m, and reported total annual CEO compensation of UK£244k for the year to December 2023. That is, the compensation was roughly the same as last year. Notably, the salary which is UK£208.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the British Chemicals industry with market capitalizations below UK£157m, we found that the median total CEO compensation was UK£252k. This suggests that Biome Technologies remunerates its CEO largely in line with the industry average. What's more, Paul Mines holds UK£42k worth of shares in the company in their own name.

Component	2023	2022	Proportion (2023)
Salary	UK£208k	UK£208k	85%
Other	UK£36k	UK£35k	15%
Total Compensation	UK£244k	UK£243k	100%

On an industry level, around 74% of total compensation represents salary and 26% is other remuneration. Biome Technologies is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Biome Technologies plc's Growth

Over the past three years, Biome Technologies plc has seen its earnings per share (EPS) grow by 17% per year. In the last year, its revenue is up 13%.

This demonstrates that the company has been improving recently and is good news for the shareholders. 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 Biome Technologies plc Been A Good Investment?

Few Biome Technologies plc shareholders would feel satisfied with the return of -80% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

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 4 warning signs for Biome Technologies (3 are significant!) that you should be aware of before investing here.

Switching gears from Biome Technologies, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.