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Does Accsys Technologies PLC’s (LON:AXS) CEO Salary Reflect Performance?

Donald Bartholomew

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Paul Hugh Clegg has been the CEO of Accsys Technologies PLC (LON:AXS) since 2009. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Accsys Technologies

How Does Paul Hugh Clegg’s Compensation Compare With Similar Sized Companies?

Our data indicates that Accsys Technologies PLC is worth UK£134m, and total annual CEO compensation is €442k. (This is based on the year to 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at €256k. We looked at a group of companies with market capitalizations from UK£76m to UK£306m, and the median CEO compensation was UK£505k.

So Paul Hugh Clegg 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.

The graphic below shows how CEO compensation at Accsys Technologies has changed from year to year.

LSE:AXS CEO Compensation, February 21st 2019

Is Accsys Technologies PLC Growing?

Accsys Technologies PLC has reduced its earnings per share by an average of 46% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 7.4%.

Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.

Has Accsys Technologies PLC Been A Good Investment?

Boasting a total shareholder return of 89% over three years, Accsys Technologies PLC has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Remuneration for Paul Hugh Clegg is close enough to the median pay for a CEO of a similar sized company .

We’re not seeing great strides in earnings per share, but the company has clearly pleased some investors, given the returns over the last three years. So we can’t see a reason to suggest the pay is inappropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Accsys Technologies.

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.

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.

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. Thank you for reading.