In 2017 Philippe Hamers was appointed CEO of Victoria plc (LON:VCP). 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 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 Philippe Hamers's Compensation Compare With Similar Sized Companies?
Our data indicates that Victoria plc is worth UK£549m, and total annual CEO compensation was reported as UK£848k for the year to March 2019. While we always look at total compensation first, we note that the salary component is less, at UK£573k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£307m to UK£1.2b. The median total CEO compensation was UK£878k.
So Philippe Hamers is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Victoria, below.
Is Victoria plc Growing?
Over the last three years Victoria plc has shrunk its earnings per share by an average of 83% per year (measured with a line of best fit). Its revenue is up 21% over last year.
Unfortunately, earnings per share have trended lower over the last three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.
Has Victoria plc Been A Good Investment?
Victoria plc has served shareholders reasonably well, with a total return of 16% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Philippe Hamers is paid around the same as most CEOs of similar size companies.
We're not seeing great strides in earnings per share, and total returns were decent but not amazing in the last three years. We wouldn't say the CEO pay is too high, but one might argue that the company should improve returns to shareholders before increasing it. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Victoria (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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