Does Mortgage Advice Bureau (Holdings) PLC’s (LON:MAB1) CEO Salary Reflect Performance?

The CEO of Mortgage Advice Bureau (Holdings) PLC (LON:MAB1) is Peter Christopher Brodnicki. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. 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.

Check out our latest analysis for Mortgage Advice Bureau (Holdings)

How Does Peter Christopher Brodnicki’s Compensation Compare With Similar Sized Companies?

Our data indicates that Mortgage Advice Bureau (Holdings) PLC is worth UK£279m, and total annual CEO compensation is UK£599k. (This figure is for the year to December 2017). While we always look at total compensation first, we note that the salary component is less, at UK£352k. We looked at a group of companies with market capitalizations from UK£151m to UK£603m, and the median CEO total compensation was UK£629k.

So Peter Christopher Brodnicki is paid around the average of the companies we looked at. 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 Mortgage Advice Bureau (Holdings) has changed from year to year.

AIM:MAB1 CEO Compensation, March 20th 2019
AIM:MAB1 CEO Compensation, March 20th 2019

Is Mortgage Advice Bureau (Holdings) PLC Growing?

Over the last three years Mortgage Advice Bureau (Holdings) PLC has grown its earnings per share (EPS) by an average of 19% per year (using a line of best fit). Its revenue is up 18% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Mortgage Advice Bureau (Holdings) PLC Been A Good Investment?

Boasting a total shareholder return of 86% over three years, Mortgage Advice Bureau (Holdings) PLC has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.

In Summary…

Peter Christopher Brodnicki is paid around the same as most CEOs of similar size companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Mortgage Advice Bureau (Holdings) (free visualization of insider trades).

Important note: Mortgage Advice Bureau (Holdings) 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.

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.