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Is HML Holdings plc's (LON:HMLH) CEO Overpaid Relative To Its Peers?

Simply Wall St

Rob Plumb has been the CEO of HML Holdings plc (LON:HMLH) since 2005. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for HML Holdings

How Does Rob Plumb's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that HML Holdings plc has a market cap of UK£15m, and is paying total annual CEO compensation of UK£183k. (This is based on the year to March 2018). We think total compensation is more important but we note that the CEO salary is lower, at UK£172k. We took a group of companies with market capitalizations below UK£163m, and calculated the median CEO total compensation to be UK£251k.

That means Rob Plumb receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at HML Holdings, below.

AIM:HMLH CEO Compensation, August 25th 2019

Is HML Holdings plc Growing?

Over the last three years HML Holdings plc has grown its earnings per share (EPS) by an average of 2.0% per year (using a line of best fit). Its revenue is up 8.2% over last year.

I'd prefer higher revenue growth, but I'm happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. You might want to check this free visual report on analyst forecasts for future earnings.

Has HML Holdings plc Been A Good Investment?

HML Holdings plc has generated a total shareholder return of 8.3% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Rob Plumb is paid around what is normal the leaders of comparable size companies.

We think many would like to see better growth. But we don't think the CEO compensation is a problem. Shareholders may want to check for free if HML Holdings insiders are buying or selling shares.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity 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.