Yahoo Finance Some Shareholders May Object To A Pay Rise For Physiomics Plc's (LON:PYC) CEO This Year
Key Insights
Physiomics' Annual General Meeting to take place on 21st of November
Total pay for CEO Jim Millen includes UK£126.0k salary
Total compensation is 56% below industry average
Physiomics' EPS declined by 53% over the past three years while total shareholder loss over the past three years was 73%
Performance at Physiomics Plc (LON:PYC) has not been particularly rosy recently and shareholders will likely be holding CEO Jim Millen and the board accountable for this. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 21st of November. We think most shareholders will probably pass the CEO compensation, based on what we gathered.
See our latest analysis for Physiomics
How Does Total Compensation For Jim Millen Compare With Other Companies In The Industry?
Our data indicates that Physiomics Plc has a market capitalization of UK£1.6m, and total annual CEO compensation was reported as UK£139k for the year to June 2023. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is UK£126.0k, represents most of the total compensation being paid.
In comparison with other companies in the British Life Sciences industry with market capitalizations under UK£160m, the reported median total CEO compensation was UK£318k. That is to say, Jim Millen is paid under the industry median.
Component | 2023 | 2022 | Proportion (2023) |
Salary | UK£126k | UK£126k | 91% |
Other | UK£13k | UK£12k | 9% |
Total Compensation | UK£139k | UK£138k | 100% |
On an industry level, roughly 60% of total compensation represents salary and 40% is other remuneration. Physiomics is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Physiomics Plc's Growth
Over the last three years, Physiomics Plc has shrunk its earnings per share by 53% per year. Its revenue is down 33% over the previous year.
Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Physiomics Plc Been A Good Investment?
With a total shareholder return of -73% over three years, Physiomics Plc shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
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.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 5 warning signs (and 4 which don't sit too well with us) in Physiomics we think you should know about.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.
