Andy Collins has been the CEO of Mountfield Group Plc (LON:MOGP) since 2015. 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 process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Mountfield Group
How Does Andy Collins's Compensation Compare With Similar Sized Companies?
According to our data, Mountfield Group Plc has a market capitalization of UK£4.3m, and pays its CEO total annual compensation worth UK£54k. (This figure is for the year to 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£8.0k. We took a group of companies with market capitalizations below UK£157m, and calculated the median CEO compensation to be UK£245k.
A first glance this seems like a real positive for shareholders, since Andy Collins is paid less than the average compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business. Take a look at Mountfield Group's profit growth by viewing this freedata-rich visualization of earnings, revenue and cash flow.
You can see, below, how CEO compensation at Mountfield Group has changed over time.
Is Mountfield Group Plc Growing?
On average over the last three years, Mountfield Group Plc has grown earnings per share (EPS) by 127% each year. In the last year, its revenue is up 53%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
Has Mountfield Group Plc Been A Good Investment?
Mountfield Group Plc has served shareholders reasonably well, with a total return of 31% over three years. 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...
It appears that Mountfield Group Plc remunerates its CEO below most similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. While returns over the last few years haven't been top notch, there is nothing to suggest to us that Andy Collins is overcompensated.
It's great to see a company that pays its CEO reasonably, even while growing. But it would be nice if insiders were also buying shares. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Mountfield Group (free visualization of insider trades).
Important note: Mountfield Group 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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.