MobilityOne Limited's (LON:MBO) CEO Looks Due For A Compensation Raise

Shareholders will be pleased by the impressive results for MobilityOne Limited (LON:MBO) recently and CEO Hussain Bin A. Rahman has played a key role. At the upcoming AGM on 13 October 2021, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

Check out our latest analysis for MobilityOne

Comparing MobilityOne Limited's CEO Compensation With the industry

According to our data, MobilityOne Limited has a market capitalization of UK£15m, and paid its CEO total annual compensation worth UK£128k over the year to December 2020. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at UK£82.4k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below UK£148m, reported a median total CEO compensation of UK£206k. This suggests that Hussain Bin A. Rahman is paid below the industry median. Moreover, Hussain Bin A. Rahman also holds UK£7.5m worth of MobilityOne stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2020	2019	Proportion (2020)
Salary	UK£82k	UK£84k	64%
Other	UK£46k	UK£46k	36%
Total Compensation	UK£128k	UK£130k	100%

Talking in terms of the industry, salary represented approximately 68% of total compensation out of all the companies we analyzed, while other remuneration made up 32% of the pie. There isn't a significant difference between MobilityOne and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at MobilityOne Limited's Growth Numbers

MobilityOne Limited has seen its earnings per share (EPS) increase by 46% a year over the past three years. It achieved revenue growth of 22% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has MobilityOne Limited Been A Good Investment?

Boasting a total shareholder return of 294% over three years, MobilityOne Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 5 warning signs for MobilityOne (1 is a bit unpleasant!) that you should be aware of before investing here.

Important note: MobilityOne is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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