Matthew Bending is the CEO of SpaceandPeople plc (LON:SAL). 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.
How Does Matthew Bending's Compensation Compare With Similar Sized Companies?
Our data indicates that SpaceandPeople plc is worth UK£2.3m, and total annual CEO compensation was reported as UK£162k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at UK£149k. We looked at a group of companies with market capitalizations under UK£153m, and the median CEO total compensation was UK£250k.
A first glance this seems like a real positive for shareholders, since Matthew Bending 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.
You can see a visual representation of the CEO compensation at SpaceandPeople, below.
Is SpaceandPeople plc Growing?
On average over the last three years, SpaceandPeople plc has shrunk earnings per share by 61% each year (measured with a line of best fit). In the last year, its revenue is down 13%.
Unfortunately, earnings per share have trended lower over the last three years. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.
Has SpaceandPeople plc Been A Good Investment?
Given the total loss of 28% over three years, many shareholders in SpaceandPeople plc are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
SpaceandPeople plc is currently paying its CEO below what is normal for companies of its size.
Shareholders should note that compensation for Matthew Bending is under the median of a group of similar sized companies. But then, EPS growth is lacking and so are the returns to shareholders. While one could argue it is appropriate for the CEO to be paid less than other CEOs of similar sized companies, given company performance, we would not call the pay overly generous. Whatever your view on compensation, you might want to check if insiders are buying or selling SpaceandPeople shares (free trial).
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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