Is Wey Education plc’s (LON:WEY) CEO Salary Justified?

The CEO of Wey Education plc (LON:WEY) is Jacqui Daniell. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Wey Education

How Does Jacqui Daniell’s Compensation Compare With Similar Sized Companies?

Our data indicates that Wey Education plc is worth UK£9.3m, and total annual CEO compensation is UK£70k. (This figure is for the year to August 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth UK£70k. We examined a group of similar sized companies, with market capitalizations of below UK£200m. The median CEO total compensation in that group is UK£313k.

A first glance this seems like a real positive for shareholders, since Jacqui Daniell is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.

The graphic below shows how CEO compensation at Wey Education has changed from year to year.

AIM:WEY CEO Compensation, March 19th 2019
AIM:WEY CEO Compensation, March 19th 2019

Is Wey Education plc Growing?

Over the last three years Wey Education plc has grown its earnings per share (EPS) by an average of 95% per year (using a line of best fit). Its revenue is up 73% over last year.

This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. You might want to check this free visual report on analyst forecasts for future earnings.

Has Wey Education plc Been A Good Investment?

Most shareholders would probably be pleased with Wey Education plc for providing a total return of 62% over three years. 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…

It looks like Wey Education plc pays its CEO less than similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Jacqui Daniell deserves a raise!

Most shareholders like to see a modestly paid CEO combined with strong performance by the company. The cherry on top would be if company insiders are buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling Wey Education 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.