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.
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.
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.
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.
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