Steve Flavell is the CEO of LoopUp Group plc (LON:LOOP). 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Steve Flavell's Compensation Compare With Similar Sized Companies?
According to our data, LoopUp Group plc has a market capitalization of UK£37m, and pays its CEO total annual compensation worth UK£342k. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£218k. We took a group of companies with market capitalizations below UK£160m, and calculated the median CEO total compensation to be UK£255k.
Thus we can conclude that Steve Flavell receives more in total compensation than the median of a group of companies in the same market, and of similar size to LoopUp Group plc. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at LoopUp Group, below.
Is LoopUp Group plc Growing?
On average over the last three years, LoopUp Group plc has grown earnings per share (EPS) by 73% each year (using a line of best fit). In the last year, its revenue is up 96%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Shareholders might be interested in this free visualization of analyst forecasts.
Has LoopUp Group plc Been A Good Investment?
With a three year total loss of 42%, LoopUp Group plc would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by LoopUp Group plc, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling LoopUp Group (free visualization of insider trades).
If you want to buy a stock that is better than LoopUp Group, this free list of high return, low debt companies is a great place to look.
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