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Is Mortgage Advice Bureau (Holdings) plc's (LON:MAB1) CEO Being Overpaid?

Simply Wall St

The CEO of Mortgage Advice Bureau (Holdings) plc (LON:MAB1) is Peter Christopher Brodnicki. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Mortgage Advice Bureau (Holdings)

How Does Peter Christopher Brodnicki's Compensation Compare With Similar Sized Companies?

According to our data, Mortgage Advice Bureau (Holdings) plc has a market capitalization of UK£282m, and pays its CEO total annual compensation worth UK£499k. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at UK£363k. We examined companies with market caps from UK£162m to UK£650m, and discovered that the median CEO total compensation of that group was UK£709k.

That means Peter Christopher Brodnicki receives fairly typical remuneration for the CEO of a company that size. 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 Mortgage Advice Bureau (Holdings) has changed over time.

AIM:MAB1 CEO Compensation, September 8th 2019

Is Mortgage Advice Bureau (Holdings) plc Growing?

Mortgage Advice Bureau (Holdings) plc has increased its earnings per share (EPS) by an average of 10% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 13%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has Mortgage Advice Bureau (Holdings) plc Been A Good Investment?

Boasting a total shareholder return of 101% over three years, Mortgage Advice Bureau (Holdings) plc has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Peter Christopher Brodnicki is paid around the same as most CEOs of similar size companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Mortgage Advice Bureau (Holdings) (free visualization of insider trades).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.