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Is Enteq Upstream Plc's (LON:NTQ) CEO Pay Justified?

Simply Wall St

In 2011 Martin Perry was appointed CEO of Enteq Upstream Plc (LON:NTQ). 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 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.

View our latest analysis for Enteq Upstream

How Does Martin Perry's Compensation Compare With Similar Sized Companies?

Our data indicates that Enteq Upstream Plc is worth UK£19m, and total annual CEO compensation was reported as US$613k for the year to March 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$613k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$319k.

As you can see, Martin Perry is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Enteq Upstream Plc is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

The graphic below shows how CEO compensation at Enteq Upstream has changed from year to year.

AIM:NTQ CEO Compensation, October 31st 2019

Is Enteq Upstream Plc Growing?

Over the last three years Enteq Upstream Plc has grown its earnings per share (EPS) by an average of 95% per year (using a line of best fit). In the last year, its revenue is up 58%.

This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. You might want to check this free visual report on analyst forecasts for future earnings.

Has Enteq Upstream Plc Been A Good Investment?

I think that the total shareholder return of 74%, over three years, would leave most Enteq Upstream Plc shareholders smiling. 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...

We compared the total CEO remuneration paid by Enteq Upstream Plc, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Shareholders may want to check for free if Enteq Upstream insiders are buying or selling shares.

Important note: Enteq Upstream 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.