Matt Williams became the CEO of Topps Tiles Plc (LON:TPT) in 2007. First, this article will compare CEO compensation with compensation at similar sized companies. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Matt Williams's Compensation Compare With Similar Sized Companies?
Our data indicates that Topps Tiles Plc is worth UK£146m, and total annual CEO compensation is UK£538k. (This number is for the twelve months until September 2018). We think total compensation is more important but we note that the CEO salary is lower, at UK£402k. We looked at a group of companies with market capitalizations from UK£77m to UK£309m, and the median CEO total compensation was UK£504k.
That means Matt Williams receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Topps Tiles, below.
Is Topps Tiles Plc Growing?
On average over the last three years, Topps Tiles Plc has shrunk earnings per share by 10.0% each year (measured with a line of best fit). Its revenue is up 2.4% over last year.
Sadly for shareholders, earnings per share are actually down, 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. You might want to check this free visual report on analyst forecasts for future earnings.
Has Topps Tiles Plc Been A Good Investment?
Since shareholders would have lost about 38% over three years, some Topps Tiles Plc shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
Matt Williams is paid around the same as most CEOs of similar size companies.
After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. Shareholders may want to check for free if Topps Tiles insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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