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Is Moneysupermarket.com Group PLC (LON:MONY) Overpaying Its CEO?

Simply Wall St

Mark Lewis became the CEO of Moneysupermarket.com Group PLC (LON:MONY) in 2017. First, this article will compare CEO compensation with compensation at similar sized companies. 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 method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Moneysupermarket.com Group

How Does Mark Lewis's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Moneysupermarket.com Group PLC has a market cap of UK£2.0b, and reported total annual CEO compensation of UK£1.2m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£541k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£1.6b to UK£5.2b. The median total CEO compensation was UK£1.9m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see a visual representation of the CEO compensation at Moneysupermarket.com Group, below.

LSE:MONY CEO Compensation, October 8th 2019

Is Moneysupermarket.com Group PLC Growing?

Moneysupermarket.com Group PLC has increased its earnings per share (EPS) by an average of 9.6% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 13%.

This revenue growth could really point to a brighter future. And the modest growth in earnings per share isn't bad, either. So while performance isn't amazing, we think it really does seem quite respectable. It could be important to check this free visual depiction of what analysts expect for the future.

Has Moneysupermarket.com Group PLC Been A Good Investment?

I think that the total shareholder return of 41%, over three years, would leave most Moneysupermarket.com Group PLC shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Moneysupermarket.com Group PLC is currently paying its CEO below what is normal for companies of its size.

It's well worth noting that while Mark Lewis is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. Although we could see higher growth, we'd argue the remuneration is modest, based on these observations. Whatever your view on compensation, you might want to check if insiders are buying or selling Moneysupermarket.com Group 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 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.