Nigel Redwood became the CEO of Nasstar plc (LON:NASA) in 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Nigel Redwood’s Compensation Compare With Similar Sized Companies?
Our data indicates that Nasstar plc is worth UK£65m, and total annual CEO compensation was reported as UK£326k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at UK£177k. We took a group of companies with market capitalizations below UK£150m, and calculated the median CEO total compensation to be UK£250k.
As you can see, Nigel Redwood is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Nasstar plc is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Nasstar, below.
Is Nasstar plc Growing?
On average over the last three years, Nasstar plc has grown earnings per share (EPS) by 22% each year (using a line of best fit). It achieved revenue growth of 4.8% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.
Has Nasstar plc Been A Good Investment?
Nasstar plc has served shareholders reasonably well, with a total return of 31% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
We compared total CEO remuneration at Nasstar plc with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. We also think investors are doing ok, over the same time period. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn’t call the CEO pay problematic. Shareholders may want to check for free if Nasstar insiders are buying or selling shares.
If you want to buy a stock that is better than Nasstar, 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 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.
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.