How Much Did Aquila Services Group plc's (LON:AQSG) CEO Pocket Last Year?
In 2015 Fiona Underwood was appointed CEO of Aquila Services Group plc (LON:AQSG). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
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View our latest analysis for Aquila Services Group
How Does Fiona Underwood's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Aquila Services Group plc has a market cap of UK£10m, and is paying total annual CEO compensation of UK£133k. (This is based on the year to March 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£110k. We looked at a group of companies with market capitalizations under UK£158m, and the median CEO total compensation was UK£248k.
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.
The graphic below shows how CEO compensation at Aquila Services Group has changed from year to year.
Is Aquila Services Group plc Growing?
On average over the last three years, Aquila Services Group plc has grown earnings per share (EPS) by 124% each year (using a line of best fit). In the last year, its revenue is up 23%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Aquila Services Group plc Been A Good Investment?
Since shareholders would have lost about 34% over three years, some Aquila Services Group plc shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
It looks like Aquila Services Group plc pays its CEO less than similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. Despite some positives, it is likely that shareholders wanted better returns, given the performance over the last three years. So while we would not say that Fiona Underwood is generously paid, it would be good to see an improvement in business performance before too an increase in pay.
When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. Shareholders may want to check for free if Aquila Services Group insiders are buying or selling shares.
If you want to buy a stock that is better than Aquila Services Group, this free list of high return, low debt companies is a great place to look.
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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.
