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In 2011 Martin Ward was appointed CEO of Redde plc (LON:REDD). First, this article will compare CEO compensation with compensation at similar sized companies. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Martin Ward's Compensation Compare With Similar Sized Companies?
According to our data, Redde plc has a market capitalization of UK£360m, and pays its CEO total annual compensation worth UK£850k. (This figure is for the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at UK£384k. We looked at a group of companies with market capitalizations from UK£160m to UK£641m, and the median CEO total compensation was UK£688k.
That means Martin Ward receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Redde, below.
Is Redde plc Growing?
Over the last three years Redde plc has grown its earnings per share (EPS) by an average of 10% per year (using a line of best fit). In the last year, its revenue is up 13%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Redde plc Been A Good Investment?
With a three year total loss of 18%, Redde plc would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
Remuneration for Martin Ward is close enough to the median pay for a CEO of a similar sized company .
We'd say the company can boast of its EPS growth, but we cannot say the same about the lacklustre shareholder returns (over the last three years). We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Redde.
Important note: Redde may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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 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. Thank you for reading.