In 2015 Kevin Lyons-Tarr was appointed CEO of 4imprint Group plc (LON:FOUR). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Kevin Lyons-Tarr's Compensation Compare With Similar Sized Companies?
According to our data, 4imprint Group plc has a market capitalization of UK£974m, and paid its CEO total annual compensation worth US$738k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$360k. When we examined a selection of companies with market caps ranging from UK£755m to UK£2.4b, we found the median CEO total compensation was UK£1.4m.
Most shareholders would consider it a positive that Kevin Lyons-Tarr takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at 4imprint Group has changed from year to year.
Is 4imprint Group plc Growing?
On average over the last three years, 4imprint Group plc has grown earnings per share (EPS) by 17% each year (using a line of best fit). Its revenue is up 18% over last year.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has 4imprint Group plc Been A Good Investment?
I think that the total shareholder return of 113%, over three years, would leave most 4imprint 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.
It looks like 4imprint Group plc pays its CEO less than similar sized companies.
Many would consider this to indicate that the pay is modest since the business is growing. And given most shareholders are probably very happy with recent returns, you might even think that Kevin Lyons-Tarr deserves a raise! It's not often we see shareholders do so well, and yet the CEO is paid modestly. The cherry on top would be if company insiders are buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling 4imprint Group shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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