Is Castleton Technology plc's (LON:CTP) CEO Pay Fair?
Dean Dickinson became the CEO of Castleton Technology plc (LON:CTP) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Castleton Technology
How Does Dean Dickinson's Compensation Compare With Similar Sized Companies?
According to our data, Castleton Technology plc has a market capitalization of UK£58m, and paid its CEO total annual compensation worth UK£618k over the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£185k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations under UK£155m, and the median CEO total compensation was UK£251k.
Thus we can conclude that Dean Dickinson receives more in total compensation than the median of a group of companies in the same market, and of similar size to Castleton Technology plc. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Castleton Technology has changed over time.
Is Castleton Technology plc Growing?
Over the last three years Castleton Technology plc has grown its earnings per share (EPS) by an average of 62% per year (using a line of best fit). In the last year, its revenue is down 1.3%.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. It could be important to check this free visual depiction of what analysts expect for the future.
Has Castleton Technology plc Been A Good Investment?
With a total shareholder return of 27% over three years, Castleton Technology 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 Castleton Technology plc pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Looking at the same time period, we think that the shareholder returns are respectable. While it may be worth researching further, we don't see a problem with the CEO pay, given the good EPS growth. So you may want to check if insiders are buying Castleton Technology shares with their own money (free access).
If you want to buy a stock that is better than Castleton Technology, 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.
