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Is Time Out Group plc's (LON:TMO) CEO Paid At A Competitive Rate?

Julio Bruno Castellanos has been the CEO of Time Out Group plc (LON:TMO) since 2016. 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Time Out Group

How Does Julio Bruno Castellanos's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Time Out Group plc has a market cap of UK£188m, and reported total annual CEO compensation of UK£420k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at UK£300k. We looked at a group of companies with market capitalizations from UK£76m to UK£305m, and the median CEO total compensation was UK£504k.

That means Julio Bruno Castellanos receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Time Out Group, below.

AIM:TMO CEO Compensation, December 9th 2019
AIM:TMO CEO Compensation, December 9th 2019

Is Time Out Group plc Growing?

Over the last three years Time Out Group plc has grown its earnings per share (EPS) by an average of 34% per year (using a line of best fit). In the last year, its revenue is up 11%.

This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.

Has Time Out Group plc Been A Good Investment?

With a three year total loss of 11%, Time Out Group plc would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Julio Bruno Castellanos is paid around what is normal the leaders of comparable size companies.

We think that the EPS growth is very pleasing, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. Shareholders may want to check for free if Time Out Group insiders are buying or selling shares.

Important note: Time Out Group 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.

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.

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. Thank you for reading.

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