In 2014 Rashid Bux was appointed CEO of Biomark Diagnostics Inc (FRA:20B). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Biomark Diagnostics

How Does Rashid Bux's Compensation Compare With Similar Sized Companies?

Our data indicates that Biomark Diagnostics Inc is worth €7.2m, and total annual CEO compensation was reported as CA$240k for the year to March 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth CA$240k. We took a group of companies with market capitalizations below CA$279m, and calculated the median CEO total compensation to be CA$603k.

A first glance this seems like a real positive for shareholders, since Rashid Bux is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.

The graphic below shows how CEO compensation at Biomark Diagnostics has changed from year to year.

Is Biomark Diagnostics Inc Growing?

Over the last three years Biomark Diagnostics Inc has grown its earnings per share (EPS) by an average of 21% per year (using a line of best fit). Its revenue is up 51% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Biomark Diagnostics Inc Been A Good Investment?

Most shareholders would probably be pleased with Biomark Diagnostics Inc for providing a total return of 108% over three years. 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...

It looks like Biomark Diagnostics Inc pays its CEO less than similar sized companies.

Many would consider this to indicate that the pay is modest since the business is growing. The strong history of shareholder returns might even have some thinking that Rashid Bux deserves a raise! It is relatively rare to see a modestly paid CEO when performance is so impressive. It would be even more positive if company insiders are buying shares. Shifting gears from CEO pay for a second, we've spotted 5 warning signs for Biomark Diagnostics you should be aware of, and 2 of them shouldn't be ignored.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.

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