Does The Parkmead Group Plc’s (LON:PMG) CEO Pay Compare Well With Peers?

Tom Cross became the CEO of The Parkmead Group Plc (LON:PMG) in 2011. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Parkmead Group

How Does Tom Cross’s Compensation Compare With Similar Sized Companies?

According to our data, The Parkmead Group Plc has a market capitalization of UK£50m, and paid its CEO total annual compensation worth UK£509k over the year to June 2019. Notably, the salary of UK£506k is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below UK£154m, and calculated the median CEO total compensation to be UK£251k.

It would therefore appear that The Parkmead Group Plc pays Tom Cross 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see, below, how CEO compensation at Parkmead Group has changed over time.

AIM:PMG CEO Compensation, December 20th 2019
AIM:PMG CEO Compensation, December 20th 2019

Is The Parkmead Group Plc Growing?

On average over the last three years, The Parkmead Group Plc has grown earnings per share (EPS) by 55% each year (using a line of best fit). In the last year, its revenue is up 18%.

This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. You might want to check this free visual report on analyst forecasts for future earnings.

Has The Parkmead Group Plc Been A Good Investment?

Given the total loss of 17% over three years, many shareholders in The Parkmead Group Plc are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

We compared the total CEO remuneration paid by The Parkmead Group Plc, 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 we must not forget that the EPS growth has been very strong over three years. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation. Shareholders may want to check for free if Parkmead Group insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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