David Parker became the CEO of A & J Mucklow Group Plc (LON:MKLW) in 2004. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. 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.
How Does David Parker’s Compensation Compare With Similar Sized Companies?
According to our data, A & J Mucklow Group Plc has a market capitalization of UK£329m, and pays its CEO total annual compensation worth UK£388k. That’s below the compensation, last year. We examined companies with market caps from UK£154m to UK£614m, and discovered that the median CEO compensation of that group was UK£634k.
Most shareholders would consider it a positive that David Parker takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at A & J Mucklow Group, below.
Is A & J Mucklow Group Plc Growing?
A & J Mucklow Group Plc has increased its earnings per share (EPS) by an average of 10% a year, over the last three years Its revenue is up 1.6% over last year.
This demonstrates that the company has been improving recently. A good result. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has A & J Mucklow Group Plc Been A Good Investment?
A & J Mucklow Group Plc has generated a total shareholder return of 23% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
A & J Mucklow Group Plc is currently paying its CEO below what is normal for companies of its size. Many would consider this to indicate that the pay is modest since the business is growing. The total shareholder return might not be amazing, but that doesn’t mean that David Parker is paid too much.
Few would complain about reasonable CEO remuneration when the business is growing earnings per share. It would be an additional positive if insiders are buying shares. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling A & J Mucklow Group Plc (free visualization of insider trades).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.