Joe Purcell has been the CEO of Mincon Group plc (LON:MCON) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. 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 Mincon Group
Comparing Mincon Group plc's CEO Compensation With the industry
At the time of writing, our data shows that Mincon Group plc has a market capitalization of UK£205m, and reported total annual CEO compensation of €280k for the year to December 2019. That's a notable decrease of 16% on last year. In particular, the salary of €250.0k, makes up a huge portion of the total compensation being paid to the CEO.
On examining similar-sized companies in the industry with market capitalizations between UK£75m and UK£300m, we discovered that the median CEO total compensation of that group was €420k. Accordingly, Mincon Group pays its CEO under the industry median.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | €250k | €300k | 89% |
| Other | €30k | €32k | 11% |
| Total Compensation | €280k | €332k | 100% |
Talking in terms of the industry, salary represented approximately 48% of total compensation out of all the companies we analyzed, while other remuneration made up 52% of the pie. Mincon Group pays out 89% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Mincon Group plc's Growth
Mincon Group plc has seen its earnings per share (EPS) increase by 22% a year over the past three years. In the last year, its revenue is up 5.4%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Mincon Group plc Been A Good Investment?
With a total shareholder return of 4.1% over three years, Mincon Group plc has done okay by shareholders. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
As we noted earlier, Mincon Group pays its CEO lower than the norm for similar-sized companies belonging to the same industry. At the same time, EPS growth has been exceptional over the past three years. However, shareholder returns have failed to show the same level of growth. We would wish for better returns (whether dividends or capital gains) but we do admire the solidEPS growth on show here. So considering these factors, we think Joe is modestly compensated.
CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Mincon Group (free visualization of insider trades).
Switching gears from Mincon Group, 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.
If you’re looking to trade Mincon Group, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted
New: Manage All Your Stock Portfolios in One Place
We've created the ultimate portfolio companion for stock investors, and it's free.
• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks
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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
About AIM:MCON
Mincon Group
Engages in the design, manufacture, sale, and servicing of rock drilling tools and associated products in Ireland, the Americas, Australasia, Europe, the Middle East, and Africa.
Reasonable growth potential with adequate balance sheet.
