We Think The Compensation For OptiBiotix Health Plc's (LON:OPTI) CEO Looks About Right

In This Article:

Key Insights

  • OptiBiotix Health's Annual General Meeting to take place on 8th of August

  • Total pay for CEO Stephen O'Hara includes UK£138.0k salary

  • The total compensation is 47% less than the average for the industry

  • Over the past three years, OptiBiotix Health's EPS fell by 95% and over the past three years, the total loss to shareholders 49%

Performance at OptiBiotix Health Plc (LON:OPTI) has been rather uninspiring recently and shareholders may be wondering how CEO Stephen O'Hara plans to fix this. At the next AGM coming up on 8th of August, they can influence managerial decision making through voting on resolutions, including executive remuneration. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We think CEO compensation looks appropriate given the data we have put together.

View our latest analysis for OptiBiotix Health

How Does Total Compensation For Stephen O'Hara Compare With Other Companies In The Industry?

At the time of writing, our data shows that OptiBiotix Health Plc has a market capitalization of UK£24m, and reported total annual CEO compensation of UK£147k for the year to December 2023. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at UK£138.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the British Biotechs industry with market capitalizations below UK£157m, reported a median total CEO compensation of UK£277k. This suggests that Stephen O'Hara is paid below the industry median. Furthermore, Stephen O'Hara directly owns UK£2.6m worth of shares in the company, implying that they are deeply invested in the company's success.

Component

2023

2022

Proportion (2023)

Salary

UK£138k

UK£143k

94%

Other

UK£9.0k

UK£8.0k

6%

Total Compensation

UK£147k

UK£151k

100%

Speaking on an industry level, nearly 89% of total compensation represents salary, while the remainder of 11% is other remuneration. Although there is a difference in how total compensation is set, OptiBiotix Health more or less reflects the market in terms of setting the salary. 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.

ceo-compensation
ceo-compensation

A Look at OptiBiotix Health Plc's Growth Numbers

Over the last three years, OptiBiotix Health Plc has shrunk its earnings per share by 95% per year. It achieved revenue growth of 41% over the last year.