John Dawson has been the CEO of Oxford BioMedica plc (LON:OXB) since 2008. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Oxford BioMedica
How Does John Dawson's Compensation Compare With Similar Sized Companies?
According to our data, Oxford BioMedica plc has a market capitalization of UK£526m, and pays its CEO total annual compensation worth UK£1.3m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£380k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£329m to UK£1.3b. The median total CEO compensation was UK£966k.
Thus we can conclude that John Dawson receives more in total compensation than the median of a group of companies in the same market, and of similar size to Oxford BioMedica plc. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Oxford BioMedica, below.
Is Oxford BioMedica plc Growing?
On average over the last three years, Oxford BioMedica plc has grown earnings per share (EPS) by 73% each year (using a line of best fit). In the last year, its revenue is up 78%.
This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.
Has Oxford BioMedica plc Been A Good Investment?
Most shareholders would probably be pleased with Oxford BioMedica plc for providing a total return of 229% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
We examined the amount Oxford BioMedica plc pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Oxford BioMedica (free visualization of insider trades).
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.