Nick Bolton became the CEO of Oxford Metrics plc (LON:OMG) in 2005. 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. 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 Nick Bolton's Compensation Compare With Similar Sized Companies?
Our data indicates that Oxford Metrics plc is worth UK£149m, and total annual CEO compensation was reported as UK£305k for the year to September 2019. That's less than last year. While we always look at total compensation first, we note that the salary component is less, at UK£261k. We looked at a group of companies with market capitalizations from UK£77m to UK£310m, and the median CEO total compensation was UK£466k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at Oxford Metrics has changed over time.
Is Oxford Metrics plc Growing?
On average over the last three years, Oxford Metrics plc has shrunk earnings per share by 4.7% each year (measured with a line of best fit). Its revenue is up 12% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has Oxford Metrics plc Been A Good Investment?
I think that the total shareholder return of 176%, over three years, would leave most Oxford Metrics plc shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Oxford Metrics plc is currently paying its CEO below what is normal for companies of its size.
Nick Bolton is paid less than CEOs of similar size companies. While the company isn't growing on our analysis, shareholder returns have been good in recent years. So, while it would be nice to have EPS growth, on our analysis the CEO compensation is not an issue. Whatever your view on compensation, you might want to check if insiders are buying or selling Oxford Metrics shares (free trial).
If you want to buy a stock that is better than Oxford Metrics, this free list of high return, low debt companies is a great place to look.
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