Here's What We Think About Porvair plc's (LON:PRV) CEO Pay
Ben D. Stocks became the CEO of Porvair plc (LON:PRV) in 1998. 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 method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Porvair
How Does Ben D. Stocks's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Porvair plc has a market cap of UK£256m, and is paying total annual CEO compensation of UK£1.1m. (This is based on the year to November 2018). That's a fairly small increase of 4.8% on year before. While we always look at total compensation first, we note that the salary component is less, at UK£305k. We examined companies with market caps from UK£155m to UK£620m, and discovered that the median CEO total compensation of that group was UK£637k.
Thus we can conclude that Ben D. Stocks receives more in total compensation than the median of a group of companies in the same market, and of similar size to Porvair plc. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Porvair has changed over time.
Is Porvair plc Growing?
On average over the last three years, Porvair plc has grown earnings per share (EPS) by 13% each year (using a line of best fit). Its revenue is up 11% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Porvair plc Been A Good Investment?
Boasting a total shareholder return of 76% over three years, Porvair 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...
We compared total CEO remuneration at Porvair plc with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Porvair (free visualization of insider trades).
If you want to buy a stock that is better than Porvair, this free list of high return, low debt companies is a great place to look.
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.
