In 2007 Matt Williams was appointed CEO of Topps Tiles Plc (LON:TPT). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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 Matt Williams's Compensation Compare With Similar Sized Companies?
According to our data, Topps Tiles Plc has a market capitalization of UK£136m, and paid its CEO total annual compensation worth UK£538k over the year to September 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£402k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£81m to UK£325m. The median total CEO compensation was UK£538k.
So Matt Williams receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 Topps Tiles, below.
Is Topps Tiles Plc Growing?
Over the last three years Topps Tiles Plc has shrunk its earnings per share by an average of 19% per year (measured with a line of best fit). In the last year, its revenue changed by just 0.4%.
Sadly for shareholders, earnings per share are actually down, over three years. And the flat revenue hardly impresses. 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 Topps Tiles Plc Been A Good Investment?
Since shareholders would have lost about 13% over three years, some Topps Tiles Plc shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
Remuneration for Matt Williams is close enough to the median pay for a CEO of a similar sized company .
After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Few would argue that it's wise for the company to pay any more, before returns improve. So you may want to check if insiders are buying Topps Tiles shares with their own money (free access).
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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