Tim Mason has been the CEO of Eagle Eye Solutions Group plc (LON:EYE) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Eagle Eye Solutions Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
See our latest analysis for Eagle Eye Solutions Group
Comparing Eagle Eye Solutions Group plc's CEO Compensation With the industry
According to our data, Eagle Eye Solutions Group plc has a market capitalization of UK£110m, and paid its CEO total annual compensation worth UK£610k over the year to June 2020. Notably, that's a decrease of 54% over the year before. Notably, the salary which is UK£329.0k, represents most of the total compensation being paid.
On examining similar-sized companies in the industry with market capitalizations between UK£73m and UK£293m, we discovered that the median CEO total compensation of that group was UK£492k. From this we gather that Tim Mason is paid around the median for CEOs in the industry. Furthermore, Tim Mason directly owns UK£1.0m worth of shares in the company.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | UK£329k | UK£320k | 54% |
| Other | UK£281k | UK£1.0m | 46% |
| Total Compensation | UK£610k | UK£1.3m | 100% |
Talking in terms of the industry, salary represented approximately 69% of total compensation out of all the companies we analyzed, while other remuneration made up 31% of the pie. Eagle Eye Solutions Group pays a modest slice of remuneration through salary, as compared to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Eagle Eye Solutions Group plc's Growth
Eagle Eye Solutions Group plc's earnings per share (EPS) grew 45% per year over the last three years. It achieved revenue growth of 21% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Eagle Eye Solutions Group plc Been A Good Investment?
Boasting a total shareholder return of 97% over three years, Eagle Eye Solutions Group plc has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
To Conclude...
As we touched on above, Eagle Eye Solutions Group plc is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Investors would surely be happy to see that returns have been great, and that EPS is up. So one could argue that CEO compensation is quite modest, if you consider company performance! Also, such solid returns might lead to shareholders warming to the idea of a bump in pay.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Eagle Eye Solutions Group that investors should look into moving forward.
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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About AIM:EYE
Eagle Eye Solutions Group
Provides marketing technology software as a service (SaaS) solution in the United Kingdom, the United States, Canada, Australia, rest of Europe, and the Asia Pacific.
Flawless balance sheet with solid track record.
