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Is ZOO Digital Group plc’s (LON:ZOO) CEO Pay Justified?

Simply Wall St

Stuart Green became the CEO of ZOO Digital Group plc (LON:ZOO) in 2006. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for ZOO Digital Group

How Does Stuart Green’s Compensation Compare With Similar Sized Companies?

According to our data, ZOO Digital Group plc has a market capitalization of UK£51m, and pays its CEO total annual compensation worth US$233k. (This figure is for the year to March 2017). While we always look at total compensation first, we note that the salary component is less, at US$162k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$323k.

So Stuart Green receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

The graphic below shows how CEO compensation at ZOO Digital Group has changed from year to year.

AIM:ZOO CEO Compensation, February 28th 2019

Is ZOO Digital Group plc Growing?

On average over the last three years, ZOO Digital Group plc has shrunk earnings per share by 40% each year (measured with a line of best fit). In the last year, its revenue is up 43%.

Investors should note that, over three years, earnings per share are down. But on the other hand, revenue growth is strong, suggesting a brighter future. It’s hard to reach a conclusion about business performance right now. This may be one to watch. You might want to check this free visual report on analyst forecasts for future earnings.

Has ZOO Digital Group plc Been A Good Investment?

Boasting a total shareholder return of 661% over three years, ZOO Digital Group plc has done well by shareholders. 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.

In Summary…

Remuneration for Stuart Green is close enough to the median pay for a CEO of a similar sized company .

While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So all things considered I’d venture that the CEO pay is appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling ZOO Digital Group (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.

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 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. Thank you for reading.