Does Bioventix's (LON:BVXP) CEO Salary Compare Well With Industry Peers?

The CEO of Bioventix PLC (LON:BVXP) is Peter Harrison, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Bioventix.

Check out our latest analysis for Bioventix

How Does Total Compensation For Peter Harrison Compare With Other Companies In The Industry?

According to our data, Bioventix PLC has a market capitalization of UK£207m, and paid its CEO total annual compensation worth UK£285k over the year to June 2020. Notably, that's a decrease of 12% over the year before. Notably, the salary which is UK£187.0k, represents most of the total compensation being paid.

On examining similar-sized companies in the industry with market capitalizations between UK£75m and UK£300m, we discovered that the median CEO total compensation of that group was UK£309k. From this we gather that Peter Harrison is paid around the median for CEOs in the industry. Moreover, Peter Harrison also holds UK£17m worth of Bioventix stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 66% of total compensation represents salary and 34% is other remuneration. There isn't a significant difference between Bioventix and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Bioventix PLC's Growth Numbers

Over the past three years, Bioventix PLC has seen its earnings per share (EPS) grow by 13% per year. It achieved revenue growth of 11% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Bioventix PLC Been A Good Investment?

Most shareholders would probably be pleased with Bioventix PLC for providing a total return of 73% 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.

In Summary...

As previously discussed, Peter is compensated close to the median for companies of its size, and which belong 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 Peter is compensated rather modestly, given the solid company performance! In fact, shareholders might even think the CEO deserves a raise as a reward due to the fantastic returns generated.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Bioventix.

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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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