A Look At Limitless Earth's (LON:LME) CEO Remuneration

Guido Contesso became the CEO of Limitless Earth plc (LON:LME) in 2015, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Limitless Earth.

See our latest analysis for Limitless Earth

Comparing Limitless Earth plc's CEO Compensation With the industry

According to our data, Limitless Earth plc has a market capitalization of UK£9.3m, and paid its CEO total annual compensation worth UK£70k over the year to January 2020. That's mostly flat as compared to the prior year's compensation. It is worth noting that the CEO compensation consists entirely of the salary, worth UK£70k.

In comparison with other companies in the industry with market capitalizations under UK£149m, the reported median total CEO compensation was UK£243k. In other words, Limitless Earth pays its CEO lower than the industry median. What's more, Guido Contesso holds UK£355k worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 49% of total compensation represents salary, while the remainder of 51% is other remuneration. Speaking on a company level, Limitless Earth prefers to tread along a traditional path, disbursing all compensation through a salary. 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.

A Look at Limitless Earth plc's Growth Numbers

Limitless Earth plc's earnings per share (EPS) grew 7.1% per year over the last three years. Its revenue is up 11% over the last year.

We think the revenue growth is good. And, while modest, the EPS growth is noticeable. Although we'll stop short of calling the stock a top performer, we think the company has potential. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Limitless Earth plc Been A Good Investment?

Most shareholders would probably be pleased with Limitless Earth plc for providing a total return of 226% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Limitless Earth pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As previously discussed, Guido is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. On the other hand, shareholder returns have been have been very pleasing, over the last three years, and that should put a smile on the faces of investors. Considering this fine result for investors, we believe CEO compensation to be apt.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 2 warning signs (and 1 which shouldn't be ignored) in Limitless Earth we think you should know about.

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.

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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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