In 2007 Matt Williams was appointed CEO of Topps Tiles Plc (LON:TPT). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Matt Williams’s Compensation Compare With Similar Sized Companies?
According to our data, Topps Tiles Plc has a market capitalization of UK£114m, and pays its CEO total annual compensation worth UK£1m. That’s below the compensation, last year. We looked at a group of companies with market capitalizations under UK£156m, and the median CEO compensation was UK£245k.
As you can see, Matt Williams is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Topps Tiles Plc is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Topps Tiles, below.
Is Topps Tiles Plc Growing?
Topps Tiles Plc has reduced its earnings per share by an average of 2.0% a year, over the last three years. It achieved revenue growth of 1.0% over the last year.
Unfortunately there is a complete lack of earnings per share improvement, over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Topps Tiles Plc Been A Good Investment?
With a three year total loss of 53%, Topps Tiles Plc would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We compared the total CEO remuneration paid by Topps Tiles Plc, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.
Arguably worse, investors are without a positive return for the last three years. Some might well form the view that the CEO is paid too generously! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Topps Tiles Plc.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.