Is StatPro Group plc’s (LON:SOG) CEO Pay Fair?

The CEO of StatPro Group plc (LON:SOG) is Justin M. B. Wheatley. 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 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.

View our latest analysis for StatPro Group

How Does Justin M. B. Wheatley’s Compensation Compare With Similar Sized Companies?

According to our data, StatPro Group plc has a market capitalization of UK£98m, and pays its CEO total annual compensation worth UK£554k. (This is based on the year to December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at UK£400k. We examined a group of similar sized companies, with market capitalizations of below UK£166m. The median CEO total compensation in that group is UK£250k.

It would therefore appear that StatPro Group plc pays Justin M. B. Wheatley 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 StatPro Group has changed over time.

AIM:SOG CEO Compensation, August 15th 2019
AIM:SOG CEO Compensation, August 15th 2019

Is StatPro Group plc Growing?

Over the last three years StatPro Group plc has grown its earnings per share (EPS) by an average of 60% per year (using a line of best fit). It achieved revenue growth of 3.3% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.

Has StatPro Group plc Been A Good Investment?

I think that the total shareholder return of 56%, over three years, would leave most StatPro Group plc shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

We compared total CEO remuneration at StatPro Group 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, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling StatPro Group shares (free trial).

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.

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.

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. Thank you for reading.