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In 2016 David Richards was appointed CEO of WANdisco plc (LON:WAND). 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does David Richards's Compensation Compare With Similar Sized Companies?
According to our data, WANdisco plc has a market capitalization of UK£287m, and pays its CEO total annual compensation worth US$947k. (This is based on the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$490k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$821k.
So David Richards 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 WANdisco has changed over time.
Is WANdisco plc Growing?
Over the last three years WANdisco plc has grown its earnings per share (EPS) by an average of 54% per year (using a line of best fit). Its revenue is up 2.0% over last year.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.
Has WANdisco plc Been A Good Investment?
I think that the total shareholder return of 259%, over three years, would leave most WANdisco plc shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for David Richards is close enough to the median pay for a CEO of a similar sized company .
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling WANdisco 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.
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 firstname.lastname@example.org. 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.