It's Unlikely That Shareholders Will Increase Physiomics Plc's (LON:PYC) Compensation By Much This Year

Key Insights

• Physiomics will host its Annual General Meeting on 21st of November
• Total pay for CEO Jim Millen includes UK£126.0k salary
• The overall pay is 56% below the industry average
• Physiomics' three-year loss to shareholders was 73% while its EPS was down 53% over the past three years

The underwhelming performance at Physiomics Plc (LON:PYC) recently has probably not pleased shareholders. At the upcoming AGM on 21st of November, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. The data we gathered below shows that CEO compensation looks acceptable for now.

View our latest analysis for Physiomics

Comparing Physiomics Plc's CEO Compensation With The Industry

According to our data, Physiomics Plc has a market capitalization of UK£1.6m, and paid its CEO total annual compensation worth UK£139k over the year to June 2023. This means that the compensation hasn't changed much from last year. In particular, the salary of UK£126.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the British Life Sciences industry with market capitalizations under UK£160m, the reported median total CEO compensation was UK£318k. Accordingly, Physiomics pays its CEO under the industry median.

Component	2023	2022	Proportion (2023)
Salary	UK£126k	UK£126k	91%
Other	UK£13k	UK£12k	9%
Total Compensation	UK£139k	UK£138k	100%

On an industry level, around 60% of total compensation represents salary and 40% is other remuneration. Physiomics is paying a higher share of its remuneration through a salary in comparison to the overall industry. 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 Physiomics Plc's Growth Numbers

Physiomics Plc has reduced its earnings per share by 53% a year over the last three years. In the last year, its revenue is down 33%.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Physiomics Plc Been A Good Investment?

Few Physiomics Plc shareholders would feel satisfied with the return of -73% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

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 5 warning signs for Physiomics (4 shouldn't be ignored!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.