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Does Rotala PLC's (LON:ROL) CEO Salary Compare Well With Others?

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Simon Dunn is the CEO of Rotala PLC (LON:ROL). 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Rotala

How Does Simon Dunn's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Rotala PLC has a market cap of UK£26m, and is paying total annual CEO compensation of UK£223k. (This number is for the twelve months until November 2017). We think total compensation is more important but we note that the CEO salary is lower, at UK£206k. We took a group of companies with market capitalizations below UK£152m, and calculated the median CEO total compensation to be UK£239k.

So Simon Dunn is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

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

AIM:ROL CEO Compensation, April 4th 2019
AIM:ROL CEO Compensation, April 4th 2019

Is Rotala PLC Growing?

Over the last three years Rotala PLC has grown its earnings per share (EPS) by an average of 34% per year (using a line of best fit). It achieved revenue growth of 7.8% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.

Has Rotala PLC Been A Good Investment?

Since shareholders would have lost about 18% over three years, some Rotala PLC shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Remuneration for Simon Dunn is close enough to the median pay for a CEO of a similar sized company .

We like that the company is growing EPS, but we find the returns over the last three years to be lacking. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. So you may want to check if insiders are buying Rotala shares with their own money (free access).

If you want to buy a stock that is better than Rotala, 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.

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