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Does ZOO Digital Group plc's (LON:ZOO) CEO Salary Reflect Performance?

Simply Wall St

Stuart Green became the CEO of ZOO Digital Group plc (LON:ZOO) in 2006. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for ZOO Digital Group

How Does Stuart Green's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that ZOO Digital Group plc has a market cap of UK£58m, and reported total annual CEO compensation of US$242k for the year to March 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$230k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$319k.

So Stuart Green receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at ZOO Digital Group has changed from year to year.

AIM:ZOO CEO Compensation, October 24th 2019

Is ZOO Digital Group plc Growing?

ZOO Digital Group plc has reduced its earnings per share by an average of 32% a year, over the last three years (measured with a line of best fit). In the last year, its revenue changed by just 0.9%.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the flat revenue hardly impresses. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.

Has ZOO Digital Group plc Been A Good Investment?

Boasting a total shareholder return of 789% over three years, ZOO Digital Group plc has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Remuneration for Stuart Green is close enough to the median pay for a CEO of a similar sized company .

We feel that earnings per share have been a bit disappointing, but it's nice to see positive shareholder returns over the last three years. So we think most shareholders wouldn't be too worried about CEO compensation, which is close to the median for similar sized companies. Shareholders may want to check for free if ZOO Digital Group insiders are buying or selling shares.

Important note: ZOO Digital Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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.