Richard Burrell is the CEO of Aggregated Micro Power Holdings plc (LON:AMPH). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Richard Burrell’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Aggregated Micro Power Holdings plc has a market cap of UK£52m, and is paying total annual CEO compensation of UK£125k. (This figure is for the year to March 2018). While we always look at total compensation first, we note that the salary component is less, at UK£105k. We examined a group of similar sized companies, with market capitalizations of below UK£153m. The median CEO total compensation in that group is UK£238k.
A first glance this seems like a real positive for shareholders, since Richard Burrell 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 Aggregated Micro Power Holdings has changed from year to year.
Is Aggregated Micro Power Holdings plc Growing?
Aggregated Micro Power Holdings plc has increased its earnings per share (EPS) by an average of 120% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 80%.
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. Shareholders might be interested in this free visualization of analyst forecasts.
Has Aggregated Micro Power Holdings plc Been A Good Investment?
Aggregated Micro Power Holdings plc has generated a total shareholder return of 32% over three years, so most shareholders would be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
It appears that Aggregated Micro Power Holdings plc remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. While some might be keen on seeing higher returns, our short analysis has not produced any evidence to suggest Richard Burrell is overcompensated.
It’s great to see a company that pays its CEO reasonably, even while growing. It would be an additional positive if insiders are buying shares. Shareholders may want to check for free if Aggregated Micro Power Holdings insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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