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Peter Harrison is the CEO of Bioventix PLC (LON:BVXP), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also assess whether Bioventix pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Bioventix

Comparing Bioventix PLC's CEO Compensation With the industry

According to our data, Bioventix PLC has a market capitalization of UK£214m, and paid its CEO total annual compensation worth UK£285k over the year to June 2020. That's a notable decrease of 12% on last year. Notably, the salary which is UK£187.0k, represents most of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from UK£75m to UK£301m, we found that the median CEO total compensation was UK£290k. This suggests that Bioventix remunerates its CEO largely in line with the industry average. Moreover, Peter Harrison also holds UK£17m worth of Bioventix stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 66% of total compensation represents salary and 34% is other remuneration. Bioventix is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. 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 Bioventix PLC's Growth Numbers

Over the past three years, Bioventix PLC has seen its earnings per share (EPS) grow by 13% per year. It achieved revenue growth of 11% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Bioventix PLC Been A Good Investment?

We think that the total shareholder return of 73%, over three years, would leave most Bioventix PLC shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

As we touched on above, Bioventix PLC is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. The company is growing EPS and total shareholder returns have been pleasing. Indeed, many might consider that Peter is compensated rather modestly, given the solid company performance! Also, such solid returns might lead to shareholders warming to the idea of a bump in pay.