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Is Restore plc’s (LON:RST) CEO Overpaid Relative To Its Peers?

Mary Ramos

In 2009 Charles Anthony Skinner was appointed CEO of Restore plc (LON:RST). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Restore

How Does Charles Anthony Skinner’s Compensation Compare With Similar Sized Companies?

Our data indicates that Restore plc is worth UK£408m, and total annual CEO compensation is UK£7.2m. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at UK£510k. When we examined a selection of companies with market caps ranging from UK£158m to UK£631m, we found the median CEO compensation was UK£693k.

Thus we can conclude that Charles Anthony Skinner receives more in total compensation than the median of a group of companies in the same market, and of similar size to Restore plc. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at Restore has changed over time.

AIM:RST CEO Compensation December 22nd 18

Is Restore plc Growing?

Restore plc has increased its earnings per share (EPS) by an average of 17% a year, over the last three years It achieved revenue growth of 15% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has Restore plc Been A Good Investment?

Restore plc has not done too badly by shareholders, with a total return of 8.6%, over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.

In Summary…

We examined the amount Restore plc pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. We also note that, over the same time frame, shareholder returns haven’t been bad. While it may be worth researching further, we don’t see a problem with the CEO pay, given the good EPS growth. So you may want to check if insiders are buying Restore shares with their own money (free access).

Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.