The CEO of Touchstar plc (LON:TST) is Mark Hardy. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Mark Hardy’s Compensation Compare With Similar Sized Companies?
Our data indicates that Touchstar plc is worth UK£3.5m, and total annual CEO compensation was reported as UK£205k for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth UK£205k. We looked at a group of companies with market capitalizations under UK£154m, and the median CEO total compensation was UK£251k.
That means Mark Hardy receives fairly typical remuneration for the CEO of a company that size. 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.
The graphic below shows how CEO compensation at Touchstar has changed from year to year.
Is Touchstar plc Growing?
Touchstar plc has increased its earnings per share (EPS) by an average of 25% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 2.2%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings.
Has Touchstar plc Been A Good Investment?
Given the total loss of 47% over three years, many shareholders in Touchstar plc are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Mark Hardy is paid around what is normal the leaders of comparable size companies.
We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Touchstar.
Important note: Touchstar may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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