Ian Alexander Strafford-Taylor has been the CEO of Equals Group plc (LON:EQLS) since 2012. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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 Ian Alexander Strafford-Taylor's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Equals Group plc has a market cap of UK£155m, and reported total annual CEO compensation of UK£263k for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth UK£263k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£76m to UK£302m. The median total CEO compensation was UK£454k.
Most shareholders would consider it a positive that Ian Alexander Strafford-Taylor takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Equals Group has changed over time.
Is Equals Group plc Growing?
Over the last three years Equals Group plc has grown its earnings per share (EPS) by an average of 114% per year (using a line of best fit). Its revenue is up 34% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. You might want to check this free visual report on analyst forecasts for future earnings.
Has Equals Group plc Been A Good Investment?
Most shareholders would probably be pleased with Equals Group plc for providing a total return of 152% over three years. 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.
Equals Group plc is currently paying its CEO below what is normal for companies of its size.
Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Ian Alexander Strafford-Taylor deserves a raise! Most shareholders like to see a modestly paid CEO combined with strong performance by the company. But it is even better if company insiders are also buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling Equals 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.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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