Dominic Charles Agace became the CEO of M Winkworth PLC (LON:WINK) in 2006. First, this article will compare CEO compensation with compensation at similar sized companies. 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. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for M Winkworth
How Does Dominic Charles Agace’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that M Winkworth PLC has a market cap of UK£16m, and is paying total annual CEO compensation of UK£185k. (This number is for the twelve months until December 2017). It is worth noting that the CEO compensation consists almost entirely of the salary, worth UK£184k. We took a group of companies with market capitalizations below UK£153m, and calculated the median CEO total compensation to be UK£239k.
So Dominic Charles Agace is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at M Winkworth has changed from year to year.
Is M Winkworth PLC Growing?
Over the last three years M Winkworth PLC has shrunk its earnings per share by an average of 12% per year (measured with a line of best fit). Its revenue is up 10% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has M Winkworth PLC Been A Good Investment?
M Winkworth PLC has generated a total shareholder return of 19% over three years, so most shareholders would be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
In Summary…
Dominic Charles Agace is paid around what is normal the leaders of comparable size companies.
We feel that earnings per share have been a bit disappointing, but and we don’t think the total returns are amazing. We do not think the CEO pay is a problem, but one might argue that the company should improve returns to shareholders before increasing it. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling M Winkworth (free visualization of insider trades).
Important note: M Winkworth 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.
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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. Thank you for reading.