Here's What We Think About Avingtrans' (LON:AVG) CEO Pay

This article will reflect on the compensation paid to Steve McQuillan who has served as CEO of Avingtrans plc (LON:AVG) since 2008. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Avingtrans

Comparing Avingtrans plc's CEO Compensation With the industry

According to our data, Avingtrans plc has a market capitalization of UK£92m, and paid its CEO total annual compensation worth UK£333k over the year to May 2020. That's a notable decrease of 21% on last year. In particular, the salary of UK£293.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below UK£147m, we found that the median total CEO compensation was UK£333k. This suggests that Avingtrans remunerates its CEO largely in line with the industry average. Furthermore, Steve McQuillan directly owns UK£894k worth of shares in the company.

On an industry level, roughly 48% of total compensation represents salary and 52% is other remuneration. It's interesting to note that Avingtrans pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Avingtrans plc's Growth Numbers

Avingtrans plc has seen its earnings per share (EPS) increase by 96% a year over the past three years. Its revenue is up 9.4% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Avingtrans plc Been A Good Investment?

We think that the total shareholder return of 65%, over three years, would leave most Avingtrans 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...

As we touched on above, Avingtrans plc is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Investors would surely be happy to see that returns have been great, and that EPS is up. Indeed, many might consider that Steve is compensated rather modestly, given the solid company performance! In fact, shareholders might even think the CEO deserves a raise as a reward due to the fantastic returns generated.

So you may want to check if insiders are buying Avingtrans shares with their own money (free access).

Switching gears from Avingtrans, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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