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Tim Mason became the CEO of Eagle Eye Solutions Group plc (LON:EYE) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Tim Mason's Compensation Compare With Similar Sized Companies?
According to our data, Eagle Eye Solutions Group plc has a market capitalization of UK£44m, and pays its CEO total annual compensation worth UK£1.3m. (This number is for the twelve months until June 2018). We think total compensation is more important but we note that the CEO salary is lower, at UK£308k. We looked at a group of companies with market capitalizations under UK£160m, and the median CEO total compensation was UK£254k.
Thus we can conclude that Tim Mason receives more in total compensation than the median of a group of companies in the same market, and of similar size to Eagle Eye Solutions Group plc. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Eagle Eye Solutions Group has changed from year to year.
Is Eagle Eye Solutions Group plc Growing?
Over the last three years Eagle Eye Solutions Group plc has grown its earnings per share (EPS) by an average of 5.5% per year (using a line of best fit). In the last year, its revenue is up 36%.
I like the look of the strong year-on-year improvement in revenue. And in that context, the modest EPS improvement certainly isn't shabby. So while I'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! Shareholders might be interested in this free visualization of analyst forecasts.
Has Eagle Eye Solutions Group plc Been A Good Investment?
Boasting a total shareholder return of 66% over three years, Eagle Eye Solutions Group plc has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared the total CEO remuneration paid by Eagle Eye Solutions Group plc, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Over the last three years returns to investors have been great, though we might have liked stronger business growth. Considering this fine result for investors, we daresay the CEO compensation might be apt. Shareholders may want to check for free if Eagle Eye Solutions Group insiders are buying or selling shares.
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.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.