Bill Brown is the CEO of AorTech International plc (LON:AOR). 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 – 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.
How Does Bill Brown’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that AorTech International plc has a market cap of UK£10m, and is paying total annual CEO compensation of UK£80k. (This is based on the year to March 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth UK£80k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$314k.
A first glance this seems like a real positive for shareholders, since Bill Brown is paid less than the average total compensation paid by similar sized companies. Though positive, it’s important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at AorTech International, below.
Is AorTech International plc Growing?
Over the last three years AorTech International plc has grown its earnings per share (EPS) by an average of 85% per year (using a line of best fit). Its revenue is down -10.0% over last year.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. Shareholders might be interested in this free visualization of analyst forecasts.
Has AorTech International plc Been A Good Investment?
I think that the total shareholder return of 136%, over three years, would leave most AorTech International plc shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
It appears that AorTech International plc remunerates its CEO below most similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Bill Brown deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. The cherry on top would be if company insiders are buying shares with their own money. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling AorTech International (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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