Here's Why We Think Physiomics Plc's (LON:PYC) CEO Compensation Looks Fair

The performance at Physiomics Plc (LON:PYC) has been rather lacklustre of late and shareholders may be wondering what CEO Jim Millen is planning to do about this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 22 November 2022. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. In our opinion, CEO compensation does not look excessive and we discuss why.

Our analysis indicates that PYC is potentially overvalued!

How Does Total Compensation For Jim Millen Compare With Other Companies In The Industry?

Our data indicates that Physiomics Plc has a market capitalization of UK£2.4m, and total annual CEO compensation was reported as UK£138k for the year to June 2022. That's slightly lower by 5.2% over the previous year. Notably, the salary which is UK£126.0k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under UK£168m, the reported median total CEO compensation was UK£242k. That is to say, Jim Millen is paid under the industry median.

Component	2022	2021	Proportion (2022)
Salary	UK£126k	UK£124k	91%
Other	UK£12k	UK£22k	9%
Total Compensation	UK£138k	UK£146k	100%

On an industry level, roughly 86% of total compensation represents salary and 14% is other remuneration. Our data reveals that Physiomics allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Physiomics Plc's Growth Numbers

Over the last three years, Physiomics Plc has shrunk its earnings per share by 30% per year. Its revenue is up 23% over the last year.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Physiomics Plc Been A Good Investment?

With a three year total loss of 5.8% for the shareholders, Physiomics Plc would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The decline in share price is rather disappointing to shareholders. It may be to do with the fact that earnings have not grown at all in the last few years. Shareholders will get the chance to question the board on key concerns and revisit their investment thesis with regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 4 warning signs for Physiomics (1 is potentially serious!) that you should be aware of before investing here.

Switching gears from Physiomics, 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.