The CEO of Versarien plc (LON:VRS) is Neill Ricketts. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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 Neill Ricketts’s Compensation Compare With Similar Sized Companies?
Our data indicates that Versarien plc is worth UK£165m, and total annual CEO compensation was reported as UK£208k for the year to March 2019. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at UK£191k. We looked at a group of companies with market capitalizations from UK£78m to UK£311m, and the median CEO total compensation was UK£513k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at Versarien has changed over time.
Is Versarien plc Growing?
On average over the last three years, Versarien plc has grown earnings per share (EPS) by 21% each year (using a line of best fit). In the last year, its revenue is up 1.3%.
This demonstrates that the company has been improving recently. A good result. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don’t have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Versarien plc Been A Good Investment?
Most shareholders would probably be pleased with Versarien plc for providing a total return of 830% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
It appears that Versarien plc remunerates its CEO below most similar sized companies.
Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Neill Ricketts deserves a raise! It’s not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. So you may want to check if insiders are buying Versarien shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.