In 2017 Steve Ashmore was appointed CEO of HSS Hire Group plc (LON:HSS). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Steve Ashmore's Compensation Compare With Similar Sized Companies?
According to our data, HSS Hire Group plc has a market capitalization of UK£67m, and paid its CEO total annual compensation worth UK£678k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at UK£363k. We examined a group of similar sized companies, with market capitalizations of below UK£153m. The median CEO total compensation in that group is UK£250k.
It would therefore appear that HSS Hire Group plc pays Steve Ashmore 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 better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at HSS Hire Group has changed from year to year.
Is HSS Hire Group plc Growing?
On average over the last three years, HSS Hire Group plc has grown earnings per share (EPS) by 3.5% each year (using a line of best fit). It achieved revenue growth of 10% over the last year.
This revenue growth could really point to a brighter future. And, while modest, the earnings per share growth is noticeable. Although we'll stop short of calling the stock a top performer, we think the company has potential. You might want to check this free visual report on analyst forecasts for future earnings.
Has HSS Hire Group plc Been A Good Investment?
With a three year total loss of 44%, HSS Hire Group plc would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at HSS Hire Group plc with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Although we'd stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. So you may want to check if insiders are buying HSS Hire Group shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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