Yahoo Finance Here's Why Shareholders Should Examine MYCELX Technologies Corporation's (LON:MYX) CEO Compensation Package More Closely
Shareholders will probably not be too impressed with the underwhelming results at MYCELX Technologies Corporation (LON:MYX) recently. At the upcoming AGM on 07 July 2021, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.
Check out our latest analysis for MYCELX Technologies
Comparing MYCELX Technologies Corporation's CEO Compensation With the industry
At the time of writing, our data shows that MYCELX Technologies Corporation has a market capitalization of UK£8.8m, and reported total annual CEO compensation of US$332k for the year to December 2020. That's a notable decrease of 35% on last year. In particular, the salary of US$315.8k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the industry with market capitalizations below UK£145m, we found that the median total CEO compensation was US$304k. So it looks like MYCELX Technologies compensates Connie Mixon in line with the median for the industry. What's more, Connie Mixon holds UK£1.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2020 | 2019 | Proportion (2020) |
Salary | US$316k | US$355k | 95% |
Other | US$17k | US$160k | 5% |
Total Compensation | US$332k | US$515k | 100% |
Talking in terms of the industry, salary represented approximately 66% of total compensation out of all the companies we analyzed, while other remuneration made up 34% of the pie. MYCELX Technologies is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
MYCELX Technologies Corporation's Growth
Over the last three years, MYCELX Technologies Corporation has shrunk its earnings per share by 92% per year. Its revenue is down 40% over the previous year.
Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has MYCELX Technologies Corporation Been A Good Investment?
Few MYCELX Technologies Corporation shareholders would feel satisfied with the return of -60% over three years. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
Connie receives almost all of their compensation through a salary. Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
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. That's why we did our research, and identified 3 warning signs for MYCELX Technologies (of which 1 is potentially serious!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from MYCELX Technologies, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
