The CEO of Bango plc (LON:BGO) is Ray Anderson. 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Ray Anderson’s Compensation Compare With Similar Sized Companies?
Our data indicates that Bango plc is worth UK£91m, and total annual CEO compensation was reported as UK£222k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at UK£165k. We took a group of companies with market capitalizations below UK£161m, and calculated the median CEO total compensation to be UK£255k.
So Ray Anderson 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.
You can see, below, how CEO compensation at Bango has changed over time.
Is Bango plc Growing?
Over the last three years Bango plc has grown its earnings per share (EPS) by an average of 25% per year (using a line of best fit). Its revenue is up 59% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
Has Bango plc Been A Good Investment?
Most shareholders would probably be pleased with Bango plc for providing a total return of 38% over three years. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
Remuneration for Ray Anderson 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. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying Bango shares with their own money (free access).
Important note: Bango 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.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.