Is SCISYS PLC (LON:SSY) Overpaying Its CEO?
Klaus Heidrich became the CEO of SCISYS PLC (LON:SSY) in 2014. 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for SCISYS
How Does Klaus Heidrich’s Compensation Compare With Similar Sized Companies?
Our data indicates that SCISYS PLC is worth UK£44m, and total annual CEO compensation is UK£263k. We note that’s an increase of 34% above last year. We examined a group of similar sized companies, with market capitalizations of below UK£156m. The median CEO compensation in that group is UK£246k.
So Klaus Heidrich receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at SCISYS has changed from year to year.
Is SCISYS PLC Growing?
Over the last three years SCISYS PLC has grown its earnings per share (EPS) by an average of 70% per year. In the last year, its revenue is up 24%.
This demonstrates that the company has been improving recently. A good result. 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 SCISYS PLC Been A Good Investment?
Most shareholders would probably be pleased with SCISYS PLC for providing a total return of 126% over three years. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
In Summary…
Klaus Heidrich 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. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock.
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.
