Yahoo Finance Is Oxford BioMedica plc's (LON:OXB) CEO Paid At A Competitive Rate?
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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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. 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?
At the time of writing our data says that Oxford BioMedica plc has a market cap of UK£574m, and is paying total annual CEO compensation of UK£1.3m. (This number is for the twelve months until December 2018). Notably, that's an increase of 56% over the year before. We think total compensation is more important but we note that the CEO salary is lower, at UK£380k. We examined companies with market caps from UK£314m to UK£1.3b, and discovered that the median CEO total compensation of that group was UK£864k.
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?
Oxford BioMedica plc has increased its earnings per share (EPS) by an average of 73% a year, over the last three years (using a line of best fit). Its revenue is up 78% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.
Has Oxford BioMedica plc Been A Good Investment?
I think that the total shareholder return of 202%, over three years, would leave most Oxford BioMedica plc shareholders smiling. 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 compared total CEO remuneration at Oxford BioMedica plc with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. So you may want to check if insiders are buying Oxford BioMedica shares with their own money (free access).
If you want to buy a stock that is better than Oxford BioMedica, this free list of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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.
