The CEO of One Media iP Group Plc (LON:OMIP) is Michael Infante. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Michael Infante's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that One Media iP Group Plc has a market cap of UK£8.1m, and reported total annual CEO compensation of UK£137k for the year to October 2018. We think total compensation is more important but we note that the CEO salary is lower, at UK£100k. We examined a group of similar sized companies, with market capitalizations of below UK£154m. The median CEO total compensation in that group is UK£250k.
Most shareholders would consider it a positive that Michael Infante takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at One Media iP Group has changed over time.
Is One Media iP Group Plc Growing?
On average over the last three years, One Media iP Group Plc has grown earnings per share (EPS) by 27% each year (using a line of best fit). Its revenue is up 29% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast 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 One Media iP Group Plc Been A Good Investment?
Boasting a total shareholder return of 92% over three years, One Media iP Group Plc has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
One Media iP Group Plc is currently paying its CEO below what is normal for companies of its size.
Considering the underlying business is growing earnings, this would suggest the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Michael Infante 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 One Media iP Group shares (free trial).
If you want to buy a stock that is better than One Media iP Group, this free list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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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