We Think Shareholders May Consider Being More Generous With Bioventix PLC's (LON:BVXP) CEO Compensation Package

Key Insights

• Bioventix will host its Annual General Meeting on 7th of December
• Total pay for CEO Peter Harrison includes UK£195.8k salary
• Total compensation is 37% below industry average
• Bioventix's EPS grew by 4.8% over the past three years while total shareholder return over the past three years was 11%

Shareholders will be pleased by the robust performance of Bioventix PLC (LON:BVXP) recently and this will be kept in mind in the upcoming AGM on 7th of December. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

Check out our latest analysis for Bioventix

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

Our data indicates that Bioventix PLC has a market capitalization of UK£204m, and total annual CEO compensation was reported as UK£282k for the year to June 2023. That's a notable increase of 13% on last year. We note that the salary portion, which stands at UK£195.8k constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the British Biotechs industry with market caps ranging from UK£79m to UK£317m, we found that the median CEO total compensation was UK£447k. Accordingly, Bioventix pays its CEO under the industry median. What's more, Peter Harrison holds UK£14m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	UK£196k	UK£184k	70%
Other	UK£86k	UK£65k	30%
Total Compensation	UK£282k	UK£250k	100%

On an industry level, around 73% of total compensation represents salary and 27% is other remuneration. Although there is a difference in how total compensation is set, Bioventix more or less reflects the market in terms of setting the salary. 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.

A Look at Bioventix PLC's Growth Numbers

Over the past three years, Bioventix PLC has seen its earnings per share (EPS) grow by 4.8% per year. It achieved revenue growth of 9.4% over the last year.

We're not particularly impressed by the revenue growth, but the modest improvement in EPS is good. Considering these factors we'd say performance has been pretty decent, though not amazing. 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 Bioventix PLC Been A Good Investment?

Bioventix PLC has generated a total shareholder return of 11% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

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 Bioventix that you should be aware of before investing.

Switching gears from Bioventix, 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.