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Does Dewhurst PLC's (LON:DWHT) CEO Salary Compare Well With Others?

David Dewhurst is the CEO of Dewhurst PLC (LON:DWHT). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Dewhurst

How Does David Dewhurst's Compensation Compare With Similar Sized Companies?

According to our data, Dewhurst PLC has a market capitalization of UK£64m, and paid its CEO total annual compensation worth UK£239k over the year to September 2018. While we always look at total compensation first, we note that the salary component is less, at UK£127k. We took a group of companies with market capitalizations below UK£156m, and calculated the median CEO total compensation to be UK£249k.

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So David Dewhurst 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 Dewhurst has changed from year to year.

AIM:DWHT CEO Compensation, October 17th 2019
AIM:DWHT CEO Compensation, October 17th 2019

Is Dewhurst PLC Growing?

On average over the last three years, Dewhurst PLC has grown earnings per share (EPS) by 3.9% each year (using a line of best fit). In the last year, its revenue is up 21%.

This revenue growth could really point to a brighter future. And, while modest, the earnings per share growth is noticeable. So while performance isn't amazing, we think it really does seem quite respectable. Shareholders might be interested in this free visualization of analyst forecasts.

Has Dewhurst PLC Been A Good Investment?

Most shareholders would probably be pleased with Dewhurst PLC for providing a total return of 44% over three years. 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...

David Dewhurst is paid around the same as most CEOs of similar size companies.

While the growth could be better, the shareholder returns are clearly good. So considering most shareholders would be happy, we'd say the CEO pay is appropriate. Shareholders may want to check for free if Dewhurst insiders are buying or selling shares.

Important note: Dewhurst 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.