In 1999 Keith Neilson was appointed CEO of Craneware plc (LON:CRW). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Keith Neilson's Compensation Compare With Similar Sized Companies?
According to our data, Craneware plc has a market capitalization of UK£672m, and paid its CEO total annual compensation worth US$443k over the year to June 2019. That's below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at US$418k. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$1.1m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Craneware has changed from year to year.
Is Craneware plc Growing?
Over the last three years Craneware plc has grown its earnings per share (EPS) by an average of 14% per year (using a line of best fit). It achieved revenue growth of 6.5% over the last year.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.
Has Craneware plc Been A Good Investment?
Boasting a total shareholder return of 127% over three years, Craneware 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.
It looks like Craneware plc pays its CEO less than similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Keith Neilson deserves a raise! It's not often we see shareholders do so well, and yet the CEO is paid modestly. But it is even better if company insiders are also buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Craneware.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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