Guy Wakeley has been the CEO of Equiniti Group plc (LON:EQN) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Guy Wakeley's Compensation Compare With Similar Sized Companies?
According to our data, Equiniti Group plc has a market capitalization of UK£771m, and paid its CEO total annual compensation worth UK£3.5m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at UK£460k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from UK£306m to UK£1.2b, and discovered that the median CEO total compensation of that group was UK£881k.
It would therefore appear that Equiniti Group plc pays Guy Wakeley more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. 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 Equiniti Group has changed from year to year.
Is Equiniti Group plc Growing?
Over the last three years Equiniti Group plc has grown its earnings per share (EPS) by an average of 18% per year (using a line of best fit). Its revenue is up 19% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Equiniti Group plc Been A Good Investment?
With a total shareholder return of 25% over three years, Equiniti Group plc shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
We examined the amount Equiniti Group plc pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. We also note that, over the same time frame, shareholder returns haven't been bad. While it may be worth researching further, we don't see a problem with the CEO pay, given the good EPS growth. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Equiniti Group (free visualization of insider trades).
Important note: Equiniti 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.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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. Thank you for reading.