Shareholders will be pleased by the robust performance of Bioventix PLC (LON:BVXP) recently and this will be kept in mind in the upcoming AGM on 08 December 2022. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

See our latest analysis for Bioventix

How Does Total Compensation For Peter Harrison Compare With Other Companies In The Industry?

Our data indicates that Bioventix PLC has a market capitalization of UK£192m, and total annual CEO compensation was reported as UK£250k for the year to June 2022. Notably, that's a decrease of 18% over the year before. In particular, the salary of UK£184.4k, makes up a huge portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the industry with market capitalizations between UK£82m and UK£327m, we discovered that the median CEO total compensation of that group was UK£377k. In other words, Bioventix pays its CEO lower than the industry median. Furthermore, Peter Harrison directly owns UK£15m worth of shares in the company, implying that they are deeply invested in the company's success.

Component 2022 2021 Proportion (2022) Salary UK£184k UK£178k 74% Other UK£65k UK£126k 26% Total Compensation UK£250k UK£304k 100%

Speaking on an industry level, nearly 66% of total compensation represents salary, while the remainder of 34% is other remuneration. It's interesting to note that Bioventix pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance. ceo-compensation

Bioventix PLC's Growth

Bioventix PLC's earnings per share (EPS) grew 8.9% per year over the last three years. It achieved revenue growth of 7.2% over the last year.



We're not particularly impressed by the revenue growth, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Bioventix PLC Been A Good Investment?

Bioventix PLC has served shareholders reasonably well, with a total return of 23% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

While the company seems to be headed in the right direction performance-wise, there's always room for improvement. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

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 1 warning sign for Bioventix that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this freelist of interesting companies that have HIGH return on equity and low debt.

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

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.

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