The CEO of Blue Prism Group plc (LON:PRSM) is Alastair Bathgate. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Alastair Bathgate's Compensation Compare With Similar Sized Companies?
According to our data, Blue Prism Group plc has a market capitalization of UK£1.2b, and pays its CEO total annual compensation worth UK£222k. (This number is for the twelve months until October 2017). While we always look at total compensation first, we note that the salary component is less, at UK£134k. We looked at a group of companies with market capitalizations from UK£763m to UK£2.4b, and the median CEO total compensation was UK£1.3m.
A first glance this seems like a real positive for shareholders, since Alastair Bathgate 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.
You can see a visual representation of the CEO compensation at Blue Prism Group, below.
Is Blue Prism Group plc Growing?
On average over the last three years, Blue Prism Group plc has shrunk earnings per share by 64% each year (measured with a line of best fit). Its revenue is up 125% over last year.
Investors should note that, over three years, earnings per share are down. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has Blue Prism Group plc Been A Good Investment?
Most shareholders would probably be pleased with Blue Prism Group plc for providing a total return of 1305% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Blue Prism Group plc is currently paying its CEO below what is normal for companies of its size.
It's well worth noting that while Alastair Bathgate is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. We would like to see EPS growth, but in our view it seems the CEO is modestly remunerated. Whatever your view on compensation, you might want to check if insiders are buying or selling Blue Prism Group shares (free trial).
Important note: Blue Prism Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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