In 2013, Matthew Jeffs was appointed CEO of Arcontech Group plc (LON:ARC). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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 Matthew Jeffs's Compensation Compare With Similar Sized Companies?
According to our data, Arcontech Group plc has a market capitalization of UK£22m, and paid its CEO total annual compensation worth UK£237k over the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£165k. We examined a group of similar sized companies, with market capitalizations of below UK£165m. The median CEO total compensation in that group is UK£275k.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On a sector level, around 71% of total compensation represents salary and 29% is other remuneration. So it seems like there isn't a significant difference between Arcontech Group and the broader market, in terms of salary allocation in the overall compensation package.
So Matthew Jeffs receives a similar amount to the median CEO pay, amongst 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. You can see, below, how CEO compensation at Arcontech Group has changed over time.
Is Arcontech Group plc Growing?
Over the last three years Arcontech Group plc has seen earnings per share (EPS) move in a positive direction by an average of 37% per year (using a line of best fit). It achieved revenue growth of 15% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.
Has Arcontech Group plc Been A Good Investment?
I think that the total shareholder return of 142%, over three years, would leave most Arcontech Group plc shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Matthew Jeffs is paid around what is normal for 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. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Moving away from CEO compensation for the moment, we've identified 3 warning signs for Arcontech Group that you should be aware of before investing.
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.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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