In 2016 Roger Bullen was appointed CEO of Rosslyn Data Technologies plc (LON:RDT). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Roger Bullen's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Rosslyn Data Technologies plc has a market cap of UK£12m, and reported total annual CEO compensation of UK£176k for the year to April 2019. While we always look at total compensation first, we note that the salary component is less, at UK£160k. We looked at a group of companies with market capitalizations under UK£154m, and the median CEO total compensation was UK£251k.
So Roger Bullen receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Rosslyn Data Technologies has changed over time.
Is Rosslyn Data Technologies plc Growing?
On average over the last three years, Rosslyn Data Technologies plc has grown earnings per share (EPS) by 46% each year (using a line of best fit). In the last year, its revenue is down 3.6%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Rosslyn Data Technologies plc Been A Good Investment?
With a three year total loss of 22%, Rosslyn Data Technologies plc would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
Remuneration for Roger Bullen is close enough to the median pay for a CEO of a similar sized company .
We like that the company is growing EPS, but we cannot say the same about the lacklustre shareholder returns (over the last three years). We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Rosslyn Data Technologies.
Important note: Rosslyn Data Technologies may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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