In 2006 Nik Philpot was appointed CEO of Eckoh plc (LON:ECK). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Nik Philpot’s Compensation Compare With Similar Sized Companies?
According to our data, Eckoh plc has a market capitalization of UK£94m, and pays its CEO total annual compensation worth UK£313k. 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£244k.
So Nik Philpot receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 Eckoh, below.
Is Eckoh plc Growing?
Over the last three years Eckoh plc has grown its earnings per share (EPS) by an average of 76% per year. In the last year, its revenue is up 3.2%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Eckoh plc Been A Good Investment?
Given the total loss of 22% over three years, many shareholders in Eckoh plc are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
Nik Philpot is paid around what is normal the leaders of comparable size companies.
We like that the company is growing EPS, but it’s disappointing to see negative shareholder returns over three years. We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous.
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
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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.