U.S. Markets closed

Does Spectra Systems Corporation's (LON:SPSC) CEO Pay Reflect Performance?

Simply Wall St

Nabil Lawandy became the CEO of Spectra Systems Corporation (LON:SPSC) in 1996. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Spectra Systems

How Does Nabil Lawandy's Compensation Compare With Similar Sized Companies?

According to our data, Spectra Systems Corporation has a market capitalization of UK£60m, and pays its CEO total annual compensation worth US$511k. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at US$475k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$305k.

It would therefore appear that Spectra Systems Corporation pays Nabil Lawandy more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

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

AIM:SPSC CEO Compensation, August 6th 2019

Is Spectra Systems Corporation Growing?

Over the last three years Spectra Systems Corporation has grown its earnings per share (EPS) by an average of 65% per year (using a line of best fit). In the last year, its revenue is up 2.7%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.

Has Spectra Systems Corporation Been A Good Investment?

Most shareholders would probably be pleased with Spectra Systems Corporation for providing a total return of 635% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We examined the amount Spectra Systems Corporation pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Spectra Systems.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.