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In 2004 John McArthur was appointed CEO of Tracsis plc (LON:TRCS). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Tracsis
How Does John McArthur’s Compensation Compare With Similar Sized Companies?
Our data indicates that Tracsis plc is worth UK£179m, and total annual CEO compensation is UK£376k. (This is based on the year to 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at UK£196k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£77m to UK£309m. The median total CEO compensation was UK£514k.
That means John McArthur receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Tracsis, below.
Is Tracsis plc Growing?
Over the last three years Tracsis plc has grown its earnings per share (EPS) by an average of 21% per year (using a line of best fit). Its revenue is up 16% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Tracsis plc Been A Good Investment?
Tracsis plc has generated a total shareholder return of 26% over three years, so most shareholders would be reasonably content. 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…
John McArthur is paid around the same as most CEOs of similar size companies.
The company is growing EPS but shareholder returns have been sound but not amazing. So considering these factors, we think the CEO pay is probably quite reasonable. Shareholders may want to check for free if Tracsis insiders are buying or selling shares.
If you want to buy a stock that is better than Tracsis, this free list of high return, low debt companies is a great place to look.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.