Does Jersey Electricity plc's (LON:JEL) CEO Pay Compare Well With Peers?

January 20, 2020

Chris Ambler became the CEO of Jersey Electricity plc (LON:JEL) in 2008. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Jersey Electricity

How Does Chris Ambler's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Jersey Electricity plc has a market cap of UK£139m, and reported total annual CEO compensation of UK£330k for the year to September 2018. While we always look at total compensation first, we note that the salary component is less, at UK£239k. We examined companies with market caps from UK£77m to UK£308m, and discovered that the median CEO total compensation of that group was UK£460k.

So Chris Ambler receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at Jersey Electricity has changed over time.

LSE:JEL CEO Compensation, January 21st 2020

Is Jersey Electricity plc Growing?

Over the last three years, Jersey Electricity plc has not seen its earnings per share change much, though there is a positive trend. In the last year, its revenue is up 4.2%.

I'd prefer higher revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. Shareholders might be interested in this free visualization of analyst forecasts.

Has Jersey Electricity plc Been A Good Investment?

Jersey Electricity plc has served shareholders reasonably well, with a total return of 20% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Remuneration for Chris Ambler is close enough to the median pay for a CEO of a similar sized company .

We see room for improved growth, as well as fairly unremarkable returns over the last three years. But we don't think the CEO compensation is a problem. Whatever your view on compensation, you might want to check if insiders are buying or selling Jersey Electricity shares (free trial).

If you want to buy a stock that is better than Jersey Electricity, this free list of high return, low debt companies is a great place to look.

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.

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. Thank you for reading.

mitchell_lawler

People are still arguing about whether Nvidia's chips are the fastest. What if Jensen just built a moat that has nothing to do with the chips?

1112

PowerLaw16h

I wonder why Jensen is doing this. It just increases the risks of failure multifold.

zoe_vi5fn15h

The bearishness in threads like this is itself worth examining. Every large financing innovation has been called a bubble structure at inception, including securitisation of aircraft, of shipping, of fibre and of mortgages, and three of those four turned out to be genuinely useful market infrastructure that lowered the cost of capital for real assets. The failure case gets remembered because it was spectacular.