Jon Di-Stefano has been the CEO of Telford Homes Plc (LON:TEF) since 2011. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Jon Di-Stefano’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Telford Homes Plc has a market cap of UK£217m, and is paying total annual CEO compensation of UK£714k. (This figure is for the year to 2018). We think total compensation is more important but we note that the CEO salary is lower, at UK£333k. When we examined a selection of companies with market caps ranging from UK£79m to UK£315m, we found the median CEO compensation was UK£550k.
As you can see, Jon Di-Stefano is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Telford Homes Plc is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Telford Homes, below.
Is Telford Homes Plc Growing?
On average over the last three years, Telford Homes Plc has grown earnings per share (EPS) by 9.2% each year (using a line of best fit). Its revenue is up 29% over last year.
It’s great to see that revenue growth is strong. And in that context, the modest EPS improvement certainly isn’t shabby. I wouldn’t say this is necessarily top notch growth, but it is certainly promising.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Telford Homes Plc Been A Good Investment?
Since shareholders would have lost about 16% over three years, some Telford Homes Plc shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by Telford Homes Plc, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. Whatever your view on compensation, you might want to check if insiders are buying or selling Telford Homes shares (free trial).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.