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In 2014 Graham Mullis was appointed CEO of Novacyt S.A. (EPA:ALNOV). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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.
See our latest analysis for Novacyt
How Does Graham Mullis's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Novacyt S.A. has a market cap of €4.9m, and reported total annual CEO compensation of €405k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €280k. We looked at a group of companies with market capitalizations under €180m, and the median CEO total compensation was €157k.
It would therefore appear that Novacyt S.A. pays Graham Mullis more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Novacyt has changed over time.
Is Novacyt S.A. Growing?
Novacyt S.A. has increased its earnings per share (EPS) by an average of 102% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 20%.
This shows that the company has improved itself over the last few years. Good news for shareholders. 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 could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Novacyt S.A. Been A Good Investment?
Since shareholders would have lost about 92% over three years, some Novacyt S.A. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared the total CEO remuneration paid by Novacyt S.A., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Novacyt.