How Much is Byotrol's (LON:BYOT) CEO Getting Paid?

David Traynor has been the CEO of Byotrol plc (LON:BYOT) since 2013, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Byotrol.

See our latest analysis for Byotrol

How Does Total Compensation For David Traynor Compare With Other Companies In The Industry?

Our data indicates that Byotrol plc has a market capitalization of UK£30m, and total annual CEO compensation was reported as UK£135k for the year to March 2020. This means that the compensation hasn't changed much from last year. Notably, the salary which is UK£132.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below UK£148m, we found that the median total CEO compensation was UK£217k. Accordingly, Byotrol pays its CEO under the industry median. Furthermore, David Traynor directly owns UK£649k worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 69% of total compensation represents salary and 31% is other remuneration. Byotrol pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. 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.

Byotrol plc's Growth

Byotrol plc has seen its earnings per share (EPS) increase by 104% a year over the past three years. In the last year, its revenue is up 58%.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Byotrol plc Been A Good Investment?

We think that the total shareholder return of 114%, over three years, would leave most Byotrol plc shareholders smiling. 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...

Byotrol pays its CEO a majority of compensation through a salary. As we touched on above, Byotrol plc is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Considering robust EPS growth, we believe David to be modestly paid. Plus, we can't ignore the impressive shareholder returns, and won't be surprised if some shareholders were to reward such excellent all-around performance with a raise.

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 4 warning signs for Byotrol (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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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