How Should Investors Feel About Transense Technologies plc's (LON:TRT) CEO Pay?
The CEO of Transense Technologies plc (LON:TRT) is Harley Graham Storey-MacIntosh. 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.
See our latest analysis for Transense Technologies
How Does Harley Graham Storey-MacIntosh's Compensation Compare With Similar Sized Companies?
Our data indicates that Transense Technologies plc is worth UK£13m, and total annual CEO compensation was reported as UK£201k for the year to June 2019. We note that's an increase of 21% above last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£158k. We took a group of companies with market capitalizations below UK£152m, and calculated the median CEO total compensation to be UK£248k.
So Harley Graham Storey-MacIntosh receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Transense Technologies has changed over time.
Is Transense Technologies plc Growing?
Transense Technologies plc has reduced its earnings per share by an average of 30% a year, over the last three years (measured with a line of best fit). Its revenue is up 8.6% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.
Has Transense Technologies plc Been A Good Investment?
Given the total loss of 15% over three years, many shareholders in Transense Technologies plc are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Harley Graham Storey-MacIntosh is paid around the same as most CEOs of similar size companies.
Returns have been disappointing and the company is not growing its earnings per share. This doesn't look great when you consider CEO remuneration is up on last year. Suffice it to say, we don't think the CEO is underpaid! Whatever your view on compensation, you might want to check if insiders are buying or selling Transense Technologies shares (free trial).
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.
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.
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.
