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Mark Belton became the CEO of Trifast plc (LON:TRI) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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 Mark Belton's Compensation Compare With Similar Sized Companies?
Our data indicates that Trifast plc is worth UK£270m, and total annual CEO compensation is UK£367k. (This number is for the twelve months until March 2019). That's less than last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£300k. When we examined a selection of companies with market caps ranging from UK£160m to UK£639m, we found the median CEO total compensation was UK£683k.
A first glance this seems like a real positive for shareholders, since Mark Belton is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Trifast has changed over time.
Is Trifast plc Growing?
Over the last three years Trifast plc has grown its earnings per share (EPS) by an average of 5.3% per year (using a line of best fit). Its revenue is up 5.7% over last year.
I'm not particularly impressed by the revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. Shareholders might be interested in this free visualization of analyst forecasts.
Has Trifast plc Been A Good Investment?
I think that the total shareholder return of 75%, over three years, would leave most Trifast plc shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
It appears that Trifast plc remunerates its CEO below most similar sized companies.
It's well worth noting that while Mark Belton is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. Although we could see higher growth, we'd argue the remuneration is modest, based on these observations. Whatever your view on compensation, you might want to check if insiders are buying or selling Trifast shares (free trial).
Important note: Trifast 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.
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If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.