Key Insights

• Vectus Biosystems to hold its Annual General Meeting on 22nd of November

• Salary of AU$231.5k is part of CEO Karen Duggan's total remuneration

• The overall pay is 56% below the industry average

• Over the past three years, Vectus Biosystems' EPS grew by 21% and over the past three years, the total loss to shareholders 68%

The performance at Vectus Biosystems Limited (ASX:VBS) has been rather lacklustre of late and shareholders may be wondering what CEO Karen Duggan is planning to do about this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 22nd of November. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

See our latest analysis for Vectus Biosystems

Comparing Vectus Biosystems Limited's CEO Compensation With The Industry

Our data indicates that Vectus Biosystems Limited has a market capitalization of AU$17m, and total annual CEO compensation was reported as AU$256k for the year to June 2023. Notably, that's an increase of 11% over the year before. In particular, the salary of AU$231.5k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Australian Biotechs industry with market capitalizations below AU$306m, we found that the median total CEO compensation was AU$585k. That is to say, Karen Duggan is paid under the industry median. Moreover, Karen Duggan also holds AU$1.0m worth of Vectus Biosystems stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 60% of total compensation out of all the companies we analyzed, while other remuneration made up 40% of the pie. Vectus Biosystems pays out 91% of remuneration in the form of a salary, significantly higher than the industry average. 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 Vectus Biosystems Limited's Growth Numbers

Over the past three years, Vectus Biosystems Limited has seen its earnings per share (EPS) grow by 21% per year. Its revenue is up 4.2% over the last year.