Yahoo Finance Is Ascential plc's (LON:ASCL) CEO Overpaid Relative To Its Peers?
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Duncan Painter has been the CEO of Ascential plc (LON:ASCL) since 2011. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Ascential
How Does Duncan Painter's Compensation Compare With Similar Sized Companies?
According to our data, Ascential plc has a market capitalization of UK£1.4b, and pays its CEO total annual compensation worth UK£856k. (This number is for the twelve months until December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£509k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£756m to UK£2.4b. The median total CEO compensation was UK£1.3m.
A first glance this seems like a real positive for shareholders, since Duncan Painter is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Ascential has changed from year to year.
Is Ascential plc Growing?
On average over the last three years, Ascential plc has grown earnings per share (EPS) by 118% each year (using a line of best fit). Its revenue is down -7.3% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Ascential plc Been A Good Investment?
I think that the total shareholder return of 54%, over three years, would leave most Ascential plc shareholders smiling. 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...
It appears that Ascential plc remunerates its CEO below most similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. The strong history of shareholder returns might even have some thinking that Duncan Painter deserves a raise!
It's not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. Shareholders may want to check for free if Ascential insiders are buying or selling shares.
Important note: Ascential 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.
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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.
