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Is Braime Group PLC's (LON:BMT) CEO Paid Enough Relative To Peers?

Simply Wall St

Oliver Nicholas Braime is the CEO of Braime Group PLC (LON:BMT). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Braime Group

How Does Oliver Nicholas Braime's Compensation Compare With Similar Sized Companies?

Our data indicates that Braime Group PLC is worth UK£25m, and total annual CEO compensation was reported as UK£211k for the year to December 2018. Notably, the salary of UK£207k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under UK£157m, and the median CEO total compensation was UK£257k.

So Oliver Nicholas Braime is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

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

AIM:BMT CEO Compensation, February 29th 2020

Is Braime Group PLC Growing?

Braime Group PLC has increased its earnings per share (EPS) by an average of 24% a year, over the last three years (using a line of best fit). Its revenue is up 2.2% over last year.

This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Braime Group PLC Been A Good Investment?

Boasting a total shareholder return of 125% over three years, Braime Group PLC has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Oliver Nicholas Braime is paid around the same as most CEOs of similar size companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Braime Group (free visualization of insider trades).

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.

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.