Should You Worry About Biome Technologies plc's (LON:BIOM) CEO Salary Level?

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Paul Mines has been the CEO of Biome Technologies plc (LON:BIOM) since 2007. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Biome Technologies

How Does Paul Mines's Compensation Compare With Similar Sized Companies?

According to our data, Biome Technologies plc has a market capitalization of UK£7.4m, and pays its CEO total annual compensation worth UK£328k. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at UK£197k. We took a group of companies with market capitalizations below UK£160m, and calculated the median CEO total compensation to be UK£255k.

That means Paul Mines receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see, below, how CEO compensation at Biome Technologies has changed over time.

AIM:BIOM CEO Compensation, September 20th 2019
AIM:BIOM CEO Compensation, September 20th 2019

Is Biome Technologies plc Growing?

Biome Technologies plc has increased its earnings per share (EPS) by an average of 50% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 5.5%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Biome Technologies plc Been A Good Investment?

I think that the total shareholder return of 163%, over three years, would leave most Biome Technologies 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...

Paul Mines is paid around the same as most CEOs of similar size companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! So you may want to check if insiders are buying Biome Technologies shares with their own money (free access).

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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. Thank you for reading.

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