Why Learning Technologies Group plc's (LON:LTG) CEO Pay Matters To You

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Jonathan Satchell became the CEO of Learning Technologies Group plc (LON:LTG) in 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Learning Technologies Group

How Does Jonathan Satchell's Compensation Compare With Similar Sized Companies?

Our data indicates that Learning Technologies Group plc is worth UK£596m, and total annual CEO compensation is UK£488k. (This figure is for the year to December 2018). That's a notable increase of 29% on last year. We think total compensation is more important but we note that the CEO salary is lower, at UK£252k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£317m to UK£1.3b. The median total CEO compensation was UK£906k.

A first glance this seems like a real positive for shareholders, since Jonathan Satchell is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.

The graphic below shows how CEO compensation at Learning Technologies Group has changed from year to year.

Is Learning Technologies Group plc Growing?

Learning Technologies Group plc has increased its earnings per share (EPS) by an average of 68% a year, over the last three years (using a line of best fit). It achieved revenue growth of 83% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.

Has Learning Technologies Group plc Been A Good Investment?

I think that the total shareholder return of 172%, over three years, would leave most Learning Technologies Group plc shareholders smiling. 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.

In Summary...

It looks like Learning Technologies Group plc pays its CEO less than similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Jonathan Satchell deserves a raise!

Most shareholders like to see a modestly paid CEO combined with strong performance by the company. It would be even more positive if company insiders are buying shares. So you may want to check if insiders are buying Learning Technologies Group shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.