Tim Mason became the CEO of Eagle Eye Solutions Group plc (LON:EYE) in 2016. 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Tim Mason’s Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Eagle Eye Solutions Group plc has a market cap of UK£41m, and reported total annual CEO compensation of UK£1.3m for the year to June 2019. We note that’s an increase of 51% above last year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at UK£320k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined a group of similar sized companies, with market capitalizations of below UK£156m. The median CEO total compensation in that group is UK£249k.
It would therefore appear that Eagle Eye Solutions Group plc pays Tim Mason more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Eagle Eye Solutions Group has changed from year to year.
Is Eagle Eye Solutions Group plc Growing?
Eagle Eye Solutions Group plc has increased its earnings per share (EPS) by an average of 9.4% a year, over the last three years (using a line of best fit). Its revenue is up 23% over last year.
I would argue that the modest growth in revenue is a notable positive. And the improvement in earnings per share is modest but respectable. Although we’ll stop short of calling the stock a top performer, we think the company has potential. Shareholders might be interested in this free visualization of analyst forecasts.
Has Eagle Eye Solutions Group plc Been A Good Investment?
Eagle Eye Solutions Group plc has served shareholders reasonably well, with a total return of 25% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
We compared the total CEO remuneration paid by Eagle Eye Solutions Group plc, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Over the last three years returns to investors have been uninspiring, and we would have liked to see stronger business growth. So it’s certainly hard to argue that the CEO is modestly paid, although we don’t see the remuneration as an issue. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Eagle Eye Solutions Group (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.