In 2009, Richard Marsden was appointed CEO of Synairgen plc (LON:SNG). 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Synairgen
How Does Richard Marsden's Compensation Compare With Similar Sized Companies?
According to our data, Synairgen plc has a market capitalization of UK£106m, and paid its CEO total annual compensation worth UK£205k over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£186k. We examined a group of similar sized companies, with market capitalizations of below UK£161m. The median CEO total compensation in that group is UK£270k.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Synairgen stands. On an industry level, roughly 67% of total compensation represents salary and 33% is other remuneration. According to our research, Synairgen has allocated a higher percentage of pay to salary in comparison to the broader sector.
So Richard Marsden receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance. You can see, below, how CEO compensation at Synairgen has changed over time.
Is Synairgen plc Growing?
Synairgen plc has seen earnings per share (EPS) move positively by an average of 10% a year, over the last three years (using a line of best fit). In the last year, its revenue is down 98%.
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. It could be important to check this free visual depiction of what analysts expect for the future.
Has Synairgen plc Been A Good Investment?
I think that the total shareholder return of 436%, over three years, would leave most Synairgen plc shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Remuneration for Richard Marsden is close enough to the median pay for a CEO of a similar sized company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! Shifting gears from CEO pay for a second, we've spotted 6 warning signs for Synairgen you should be aware of, and 2 of them are a bit concerning.
Important note: Synairgen may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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