Does IQGeo Group plc's (LON:IQG) CEO Pay Matter?

Richard Petti has been the CEO of IQGeo Group plc (LON:IQG) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for IQGeo Group

How Does Richard Petti's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that IQGeo Group plc has a market cap of UK£23m, and reported total annual CEO compensation of UK£406k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at UK£210k. We looked at a group of companies with market capitalizations under UK£158m, and the median CEO total compensation was UK£250k.

Thus we can conclude that Richard Petti receives more in total compensation than the median of a group of companies in the same market, and of similar size to IQGeo Group plc. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see, below, how CEO compensation at IQGeo Group has changed over time.

Is IQGeo Group plc Growing?

On average over the last three years, IQGeo Group plc has grown earnings per share (EPS) by 73% each year (using a line of best fit). Its revenue is down 19% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has IQGeo Group plc Been A Good Investment?

IQGeo Group plc has served shareholders reasonably well, with a total return of 12% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

We examined the amount IQGeo Group plc pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

However, the earnings per share growth over three years is certainly impressive. Looking at the same time period, we think that the shareholder returns are respectable. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. Whatever your view on compensation, you might want to check if insiders are buying or selling IQGeo Group shares (free trial).

Important note: IQGeo Group 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 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.