How Does Benitec Biopharma's (NASDAQ:BNTC) CEO Salary Compare to Peers?

Jerel Banks has been the CEO of Benitec Biopharma Inc. (NASDAQ:BNTC) since 2018, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Benitec Biopharma.

See our latest analysis for Benitec Biopharma

How Does Total Compensation For Jerel Banks Compare With Other Companies In The Industry?

Our data indicates that Benitec Biopharma Inc. has a market capitalization of US$13m, and total annual CEO compensation was reported as US$632k for the year to June 2020. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at US$400.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$1.0m. In other words, Benitec Biopharma pays its CEO lower than the industry median.

On an industry level, roughly 25% of total compensation represents salary and 75% is other remuneration. Benitec Biopharma pays out 63% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Benitec Biopharma Inc.'s Growth

Over the past three years, Benitec Biopharma Inc. has seen its earnings per share (EPS) grow by 22% per year. It saw its revenue drop 98% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Benitec Biopharma Inc. Been A Good Investment?

Since shareholders would have lost about 93% over three years, some Benitec Biopharma Inc. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we noted earlier, Benitec Biopharma pays its CEO lower than the norm for similar-sized companies belonging to the same industry. However, the EPS growth over three years is certainly impressive. It's tough to criticize CEO compensation when the per-share EPS movement is positive. Shareholders, though, would ideally like to see shareholder returns head north before they agree to any raise.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 5 warning signs for Benitec Biopharma (3 are concerning!) that you should be aware of before investing here.

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