CEO Kevin Freeguard has done a decent job of delivering relatively good performance at Gattaca plc (LON:GATC) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 08 December 2021. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
Check out our latest analysis for Gattaca
How Does Total Compensation For Kevin Freeguard Compare With Other Companies In The Industry?
According to our data, Gattaca plc has a market capitalization of UK£45m, and paid its CEO total annual compensation worth UK£446k over the year to July 2021. Notably, that's an increase of 39% over the year before. We note that the salary portion, which stands at UK£300.0k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations under UK£150m, the reported median total CEO compensation was UK£409k. So it looks like Gattaca compensates Kevin Freeguard in line with the median for the industry.
| Component | 2021 | 2020 | Proportion (2021) |
| Salary | UK£300k | UK£280k | 67% |
| Other | UK£146k | UK£40k | 33% |
| Total Compensation | UK£446k | UK£320k | 100% |
On an industry level, roughly 55% of total compensation represents salary and 45% is other remuneration. Gattaca pays out 67% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Gattaca plc's Growth Numbers
Over the past three years, Gattaca plc has seen its earnings per share (EPS) grow by 136% per year. Its revenue is down 22% over the previous year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Gattaca plc Been A Good Investment?
Gattaca 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...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.