What Can We Conclude About Physiomics' (LON:PYC) CEO Pay?

Jim Millen became the CEO of Physiomics Plc (LON:PYC) in 2016, and we think it's a good time to look at 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 Physiomics.

View our latest analysis for Physiomics

Comparing Physiomics Plc's CEO Compensation With the industry

Our data indicates that Physiomics Plc has a market capitalization of UK£8.0m, and total annual CEO compensation was reported as UK£136k for the year to June 2020. That's a slight decrease of 4.8% on the prior year. Notably, the salary which is UK£123.5k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under UK£146m, the reported median total CEO compensation was UK£136k. From this we gather that Jim Millen is paid around the median for CEOs in the industry. Furthermore, Jim Millen directly owns UK£114k worth of shares in the company.

Talking in terms of the industry, salary represented approximately 60% of total compensation out of all the companies we analyzed, while other remuneration made up 40% of the pie. Physiomics is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Physiomics Plc's Growth

Physiomics Plc has seen its earnings per share (EPS) increase by 74% a year over the past three years. In the last year, its revenue is up 7.5%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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?

Physiomics Plc has generated a total shareholder return of 3.4% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

As previously discussed, Jim is compensated close to the median for companies of its size, and which belong to the same industry. However, it's admirable that over the last three years, EPS growth for the company has been impressive, though the same can't be said for investor returns. So considering these factors, we think the compensation is probably quite reasonable, but investor returns need a boost moving forward.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 5 warning signs for Physiomics that investors should think about before committing capital to this 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.

If you’re looking to trade Physiomics, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.