The CEO of Randall & Quilter Investment Holdings Ltd (LON:RQIH) is Ken Randall. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
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How Does Ken Randall's Compensation Compare With Similar Sized Companies?
Our data indicates that Randall & Quilter Investment Holdings Ltd is worth UK£370m, and total annual CEO compensation is UK£387k. (This is based on the year to December 2017). Notably, the salary of UK£387k is the vast majority of the CEO compensation. We examined companies with market caps from UK£158m to UK£632m, and discovered that the median CEO total compensation of that group was UK£678k.
A first glance this seems like a real positive for shareholders, since Ken Randall is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Randall & Quilter Investment Holdings, below.
Is Randall & Quilter Investment Holdings Ltd Growing?
Over the last three years Randall & Quilter Investment Holdings Ltd has grown its earnings per share (EPS) by an average of 6.3% per year (using a line of best fit). In the last year, its revenue is down -56%.
I would prefer it if there was revenue growth, but it is good to see EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. It could be important to check this free visual depiction of what analysts expect for the future.
Has Randall & Quilter Investment Holdings Ltd Been A Good Investment?
Boasting a total shareholder return of 104% over three years, Randall & Quilter Investment Holdings Ltd has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
It looks like Randall & Quilter Investment Holdings Ltd pays its CEO less than similar sized companies.
It's well worth noting that while Ken Randall is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. So you may want to check if insiders are buying Randall & Quilter Investment Holdings shares with their own money (free access).
If you want to buy a stock that is better than Randall & Quilter Investment Holdings, this free list of high return, low debt companies is a great place to look.
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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. Thank you for reading.