Neill Ricketts is the CEO of Versarien plc (LON:VRS). 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Neill Ricketts's Compensation Compare With Similar Sized Companies?
Our data indicates that Versarien plc is worth UK£203m, and total annual CEO compensation is UK£206k. (This figure is for the year to March 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£195k. We looked at a group of companies with market capitalizations from UK£80m to UK£320m, and the median CEO total compensation was UK£523k.
A first glance this seems like a real positive for shareholders, since Neill Ricketts is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Versarien, below.
Is Versarien plc Growing?
On average over the last three years, Versarien plc has grown earnings per share (EPS) by 21% each year (using a line of best fit). In the last year, its revenue is up 1.3%.
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. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Versarien plc Been A Good Investment?
Boasting a total shareholder return of 1157% over three years, Versarien plc 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 appears that Versarien plc remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Neill Ricketts deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. The cherry on top would be if company insiders are buying shares with their own money. Shareholders may want to check for free if Versarien insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.