U.S. Markets open in 5 hrs 3 mins

Is Next Fifteen Communications Group plc (LON:NFC) Overpaying Its CEO?

Simply Wall St

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Tim Dyson has been the CEO of Next Fifteen Communications Group plc (LON:NFC) since 1970. 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.

View our latest analysis for Next Fifteen Communications Group

How Does Tim Dyson's Compensation Compare With Similar Sized Companies?

According to our data, Next Fifteen Communications Group plc has a market capitalization of UK£485m, and pays its CEO total annual compensation worth UK£1.1m. (This is based on the year to January 2019). That's a modest increase of 1.2% on the prior year year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£666k. We examined companies with market caps from UK£317m to UK£1.3b, and discovered that the median CEO total compensation of that group was UK£902k.

So Tim Dyson receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Next Fifteen Communications Group has changed over time.

AIM:NFC CEO Compensation, May 31st 2019

Is Next Fifteen Communications Group plc Growing?

Over the last three years Next Fifteen Communications Group plc has grown its earnings per share (EPS) by an average of 57% per year (using a line of best fit). It achieved revenue growth of 16% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has Next Fifteen Communications Group plc Been A Good Investment?

I think that the total shareholder return of 121%, over three years, would leave most Next Fifteen Communications Group plc shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Tim Dyson is paid around what is normal the leaders of comparable size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Next Fifteen Communications Group (free visualization of insider trades).

If you want to buy a stock that is better than Next Fifteen Communications Group, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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.