In 2008 Steve McQuillan was appointed CEO of Avingtrans plc (LON:AVG). 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 Steve McQuillan's Compensation Compare With Similar Sized Companies?
According to our data, Avingtrans plc has a market capitalization of UK£78m, and paid its CEO total annual compensation worth UK£357k over the year to May 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth UK£340k. We took a group of companies with market capitalizations below UK£160m, and calculated the median CEO total compensation to be UK£255k.
It would therefore appear that Avingtrans plc pays Steve McQuillan more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Avingtrans, below.
Is Avingtrans plc Growing?
Over the last three years Avingtrans plc has shrunk its earnings per share by an average of 5.0% per year (measured with a line of best fit). It achieved revenue growth of 34% over the last year.
Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. It could be important to check this free visual depiction of what analysts expect for the future.
Has Avingtrans plc Been A Good Investment?
I think that the total shareholder return of 37%, over three years, would leave most Avingtrans plc shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We examined the amount Avingtrans plc pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Avingtrans.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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