Does Andrews Sykes Group plc's (LON:ASY) CEO Pay Matter?
Paul Wood has been the CEO of Andrews Sykes Group plc (LON:ASY) since 2006. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Andrews Sykes Group
How Does Paul Wood's Compensation Compare With Similar Sized Companies?
According to our data, Andrews Sykes Group plc has a market capitalization of UK£228m, and paid its CEO total annual compensation worth UK£566k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at UK£528k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£81m to UK£325m. The median total CEO compensation was UK£529k.
That means Paul Wood receives fairly typical remuneration for the CEO of a company that size. 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 Andrews Sykes Group has changed over time.
Is Andrews Sykes Group plc Growing?
Over the last three years Andrews Sykes Group plc has grown its earnings per share (EPS) by an average of 10% per year (using a line of best fit). It achieved revenue growth of 10% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Andrews Sykes Group plc Been A Good Investment?
Boasting a total shareholder return of 76% over three years, Andrews Sykes Group 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...
Paul Wood is paid around what is normal the leaders of comparable size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Andrews Sykes Group shares (free trial).
If you want to buy a stock that is better than Andrews Sykes Group, this free list of high return, low debt companies is a great place to look.
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.
