Is Ashley House plc’s (LON:ASH) CEO Incentives Align With Yours?

Tony Walters became the CEO of Ashley House plc (LON:ASH) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Ashley House

How Does Tony Walters’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Ashley House plc has a market cap of UK£7m, and is paying total annual CEO compensation of UK£196k. That’s less than last year. We looked at a group of companies with market capitalizations under UK£153m, and the median CEO compensation was UK£242k.

So Tony Walters receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

The graphic below shows how CEO compensation at Ashley House has changed from year to year.

AIM:ASH CEO Compensation October 22nd 18
AIM:ASH CEO Compensation October 22nd 18

Is Ashley House plc Growing?

Ashley House plc has increased its earnings per share (EPS) by an average of 110% a year, over the last three years Revenue was pretty flat on 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 Ashley House plc Been A Good Investment?

Ashley House plc has served shareholders reasonably well, with a total return of 27% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.

In Summary…

Tony Walters is paid around what is normal the leaders of comparable size companies.

Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable. So you may want to check if insiders are buying Ashley House plc shares with their own money (free access).

Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.

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.