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Guy Wakeley became the CEO of Equiniti Group plc (LON:EQN) in 2014. 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. 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.
How Does Guy Wakeley’s Compensation Compare With Similar Sized Companies?
According to our data, Equiniti Group plc has a market capitalization of UK£785m, and pays its CEO total annual compensation worth UK£3.1m. (This is based on the year to 2017). While we always look at total compensation first, we note that the salary component is less, at UK£460k. We examined companies with market caps from UK£311m to UK£1.2b, and discovered that the median CEO compensation of that group was UK£982k.
As you can see, Guy Wakeley is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Equiniti Group plc is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Equiniti Group has changed from year to year.
Is Equiniti Group plc Growing?
On average over the last three years, Equiniti Group plc has grown earnings per share (EPS) by 155% each year (using a line of best fit). Its revenue is up 21% 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. You might want to check this free visual report on analyst forecasts for future earnings.
Has Equiniti Group plc Been A Good Investment?
Boasting a total shareholder return of 80% over three years, Equiniti Group plc has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
We compared the total CEO remuneration paid by Equiniti Group plc, and compared it to remuneration at a group of 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. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Equiniti Group.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 firstname.lastname@example.org.