René Goehrum became the CEO of BioSyent Inc. (CVE:RX) in 1999. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does René Goehrum's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that BioSyent Inc. has a market cap of CA$108m, and is paying total annual CEO compensation of CA$509k. (This is based on the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at CA$280k. We examined a group of similar sized companies, with market capitalizations of below CA$268m. The median CEO total compensation in that group is CA$142k.
Thus we can conclude that René Goehrum receives more in total compensation than the median of a group of companies in the same market, and of similar size to BioSyent Inc.. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at BioSyent, below.
Is BioSyent Inc. Growing?
Over the last three years BioSyent Inc. has grown its earnings per share (EPS) by an average of 14% per year (using a line of best fit). It achieved revenue growth of 3.7% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has BioSyent Inc. Been A Good Investment?
With a total shareholder return of 9.8% over three years, BioSyent Inc. has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.
We compared the total CEO remuneration paid by BioSyent Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. We also note that, over the same time frame, shareholder returns haven't been bad. While it may be worth researching further, we don't see a problem with the CEO pay, given the good EPS growth. Whatever your view on compensation, you might want to check if insiders are buying or selling BioSyent shares (free trial).
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.
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