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. Next, we'll consider growth that the business demonstrates. 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 Neill Ricketts's Compensation Compare With Similar Sized Companies?
Our data indicates that Versarien plc is worth UK£115m, and total annual CEO compensation was reported as UK£208k for the year to March 2019. While we always look at total compensation first, we note that the salary component is less, at UK£191k. We examined companies with market caps from UK£77m to UK£306m, and discovered that the median CEO total compensation of that group was UK£459k.
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. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at Versarien has changed over time.
Is Versarien plc Growing?
Versarien plc has increased its earnings per share (EPS) by an average of 1.4% a year, over the last three years (using a line of best fit). It saw its revenue drop 16% over the last year.
I would prefer it if there was revenue growth, but the improvement in EPS is good. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Versarien plc Been A Good Investment?
Boasting a total shareholder return of 650% 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.
Versarien plc is currently paying its CEO below what is normal for companies of its size.
It's well worth noting that while Neill Ricketts is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. So you may want to check if insiders are buying Versarien shares with their own money (free access).
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.
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.
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