How Does IMImobile's (LON:IMO) CEO Salary Compare to Peers?
Jay Patel became the CEO of IMImobile PLC (LON:IMO) in 2013, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether IMImobile pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for IMImobile
Comparing IMImobile PLC's CEO Compensation With the industry
According to our data, IMImobile PLC has a market capitalization of UK£330m, and paid its CEO total annual compensation worth UK£314k over the year to March 2020. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at UK£300.0k constitutes the majority of total compensation received by the CEO.
On comparing similar companies from the same industry with market caps ranging from UK£156m to UK£626m, we found that the median CEO total compensation was UK£520k. Accordingly, IMImobile pays its CEO under the industry median. What's more, Jay Patel holds UK£15m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2020 | 2019 | Proportion (2020) |
Salary | UK£300k | UK£300k | 96% |
Other | UK£14k | UK£10k | 4% |
Total Compensation | UK£314k | UK£310k | 100% |
Talking in terms of the industry, salary represented approximately 67% of total compensation out of all the companies we analyzed, while other remuneration made up 33% of the pie. IMImobile pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
IMImobile PLC's Growth
Over the last three years, IMImobile PLC has shrunk its earnings per share by 32% per year. Its revenue is up 20% over the last year.
The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has IMImobile PLC Been A Good Investment?
We think that the total shareholder return of 116%, over three years, would leave most IMImobile 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.
In Summary...
IMImobile pays its CEO a majority of compensation through a salary. As we noted earlier, IMImobile pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Meanwhile, shareholder returns and revenues are growing at a good clip. However, EPS growth has been negative during this time. Negative EPS growth notwithstanding, we can conclude that on this analysis the CEO compensation seems pretty sound.
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 4 warning signs for IMImobile that investors should look into moving forward.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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