U.S. Markets close in 2 hrs 25 mins

Is ANGLE plc (LON:AGL) Overpaying Its CEO?

Simply Wall St

Andrew David Newland is the CEO of ANGLE plc (LON:AGL). First, this article will compare CEO compensation with compensation at similar sized companies. 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 process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for ANGLE

How Does Andrew David Newland's Compensation Compare With Similar Sized Companies?

Our data indicates that ANGLE plc is worth UK£111m, and total annual CEO compensation was reported as UK£403k for the year to April 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£234k. We took a group of companies with market capitalizations below UK£153m, and calculated the median CEO total compensation to be UK£251k.

Thus we can conclude that Andrew David Newland receives more in total compensation than the median of a group of companies in the same market, and of similar size to ANGLE plc. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see, below, how CEO compensation at ANGLE has changed over time.

AIM:AGL CEO Compensation, January 11th 2020

Is ANGLE plc Growing?

ANGLE plc has increased its earnings per share (EPS) by an average of 8.6% a year, over the last three years (using a line of best fit). Its revenue is up 8.0% over last year.

I'd prefer higher revenue growth, but I'm happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Shareholders might be interested in this free visualization of analyst forecasts.

Has ANGLE plc Been A Good Investment?

With a total shareholder return of 31% over three years, ANGLE plc shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

We examined the amount ANGLE plc pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

We generally prefer to see stronger EPS growth, and we're not particularly impressed with the total shareholder return, over the last three years. In conclusion we think the company should definitely focus on improving the business before awarding any large pay rises. Shareholders may want to check for free if ANGLE insiders are buying or selling shares.

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

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.

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. Thank you for reading.