Is Zotefoams plc's (LON:ZTF) CEO Overpaid Relative To Its Peers?
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In 2000 David Stirling was appointed CEO of Zotefoams plc (LON:ZTF). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Zotefoams
How Does David Stirling's Compensation Compare With Similar Sized Companies?
Our data indicates that Zotefoams plc is worth UK£285m, and total annual CEO compensation is UK£792k. (This figure is for the year to December 2018). That's a notable increase of 17% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£249k. When we examined a selection of companies with market caps ranging from UK£158m to UK£631m, we found the median CEO total compensation was UK£654k.
So David Stirling receives a similar amount to the median CEO pay, amongst 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 Zotefoams, below.
Is Zotefoams plc Growing?
Over the last three years Zotefoams plc has grown its earnings per share (EPS) by an average of 16% per year (using a line of best fit). It achieved revenue growth of 16% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.
Has Zotefoams plc Been A Good Investment?
Most shareholders would probably be pleased with Zotefoams plc for providing a total return of 134% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
David Stirling is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Zotefoams (free visualization of insider trades).
Important note: Zotefoams 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.
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.
