Yahoo Finance Is Abcam plc’s (LON:ABC) CEO Paid Enough Relative To Peers?
Alan Hirzel has been the CEO of Abcam plc (LON:ABC) since 2014. 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 process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Abcam
How Does Alan Hirzel’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Abcam plc has a market cap of UK£2.5b, and is paying total annual CEO compensation of UK£2m. Notably, that’s an increase of 31% over the year before. When we examined a selection of companies with market caps ranging from UK£1.5b to UK£4.9b, we found the median CEO compensation was UK£2m.
That means Alan Hirzel receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Abcam has changed over time.
Is Abcam plc Growing?
Abcam plc has increased its earnings per share (EPS) by an average of 18% a year, over the last three years In the last year, its revenue is up 7.4%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Abcam plc Been A Good Investment?
Most shareholders would probably be pleased with Abcam plc for providing a total return of 122% over three years. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
In Summary…
Alan Hirzel is paid around what is normal the leaders of comparable size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! So you may want to check if insiders are buying Abcam plc shares with their own money (free access).
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
