Matthew Jeffs has been the CEO of Arcontech Group plc (LON:ARC) since 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Matthew Jeffs's Compensation Compare With Similar Sized Companies?
Our data indicates that Arcontech Group plc is worth UK£24m, and total annual CEO compensation was reported as UK£309k for the year to June 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£154k. We examined a group of similar sized companies, with market capitalizations of below UK£158m. The median CEO total compensation in that group is UK£250k.
So Matthew Jeffs 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.
You can see a visual representation of the CEO compensation at Arcontech Group, below.
Is Arcontech Group plc Growing?
Over the last three years Arcontech Group plc has grown its earnings per share (EPS) by an average of 40% per year (using a line of best fit). In the last year, its revenue is up 18%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Arcontech Group plc Been A Good Investment?
Boasting a total shareholder return of 310% over three years, Arcontech Group plc has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Matthew Jeffs is paid around the same as most CEOs of similar size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying Arcontech Group shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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