This article will reflect on the compensation paid to Yatomi-Clarke Lee who has served as CEO of Prescient Therapeutics Limited (ASX:PTX) since 2016. This analysis will also assess whether Prescient Therapeutics pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for Prescient Therapeutics
How Does Total Compensation For Yatomi-Clarke Lee Compare With Other Companies In The Industry?
Our data indicates that Prescient Therapeutics Limited has a market capitalization of AU$38m, and total annual CEO compensation was reported as AU$639k for the year to June 2020. We note that's an increase of 9.1% above last year. We note that the salary portion, which stands at AU$392.0k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the industry with market capitalizations below AU$275m, reported a median total CEO compensation of AU$434k. Hence, we can conclude that Yatomi-Clarke Lee is remunerated higher than the industry median. Moreover, Yatomi-Clarke Lee also holds AU$266k worth of Prescient Therapeutics stock directly under their own name.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | AU$392k | AU$367k | 61% |
| Other | AU$247k | AU$219k | 39% |
| Total Compensation | AU$639k | AU$586k | 100% |
On an industry level, roughly 65% of total compensation represents salary and 35% is other remuneration. Although there is a difference in how total compensation is set, Prescient Therapeutics more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Prescient Therapeutics Limited's Growth
Over the past three years, Prescient Therapeutics Limited has seen its earnings per share (EPS) grow by 5.4% per year. It saw its revenue drop 34% over the last year.
We would prefer it if there was revenue growth, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Prescient Therapeutics Limited Been A Good Investment?
Since shareholders would have lost about 13% over three years, some Prescient Therapeutics Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.