Nik Philpot has been the CEO of Eckoh plc (LON:ECK) since 2006. 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 – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Nik Philpot’s Compensation Compare With Similar Sized Companies?
Our data indicates that Eckoh plc is worth UK£94m, and total annual CEO compensation is UK£313k. That’s actually a decrease on the year before. We took a group of companies with market capitalizations below UK£154m, and calculated the median CEO compensation to be UK£244k.
So Nik Philpot is paid around the average of 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.
You can see, below, how CEO compensation at Eckoh has changed over time.
Is Eckoh plc Growing?
On average over the last three years, Eckoh plc has grown earnings per share (EPS) by 76% each year. Its revenue is up 3.2% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Eckoh plc Been A Good Investment?
With a three year total loss of 12%, Eckoh plc would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
Remuneration for Nik Philpot is close enough to the median pay for a CEO of a similar sized company .
We like that the company is growing EPS, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Eckoh plc.
Or you might prefer examine intently this intuitive graph showing past earnings 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 firstname.lastname@example.org.