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Is Aggregated Micro Power Holdings plc's (LON:AMPH) CEO Overpaid Relative To Its Peers?

Simply Wall St

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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. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Aggregated Micro Power Holdings

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£46m, and is paying total annual CEO compensation of UK£125k. (This number is for the twelve months until March 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£105k. We looked at a group of companies with market capitalizations under UK£157m, and the median CEO total compensation was UK£250k.

Most shareholders would consider it a positive that Richard Burrell takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see, below, how CEO compensation at Aggregated Micro Power Holdings has changed over time.

AIM:AMPH CEO Compensation, June 10th 2019

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). It achieved revenue growth of 80% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. You might want to check this free visual report on analyst forecasts for future earnings.

Has Aggregated Micro Power Holdings plc Been A Good Investment?

Aggregated Micro Power Holdings plc has generated a total shareholder return of 9.0% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

It looks like Aggregated Micro Power Holdings 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. The total shareholder return might not be amazing, but that doesn't mean that Richard Burrell is paid too much.

Few would complain about reasonable CEO remuneration when the business is growing earnings per share. But it would be nice if insiders were also buying shares. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Aggregated Micro Power Holdings (free visualization of insider trades).

If you want to buy a stock that is better than Aggregated Micro Power Holdings, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.