Yahoo Finance Does Epwin Group PLC's (LON:EPWN) CEO Salary Reflect Performance?
Jon Bednall became the CEO of Epwin Group PLC (LON:EPWN) in 2013. 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. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Epwin Group
How Does Jon Bednall's Compensation Compare With Similar Sized Companies?
Our data indicates that Epwin Group PLC is worth UK£109m, and total annual CEO compensation is UK£410k. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at UK£250k. We took a group of companies with market capitalizations below UK£164m, and calculated the median CEO total compensation to be UK£253k.
Thus we can conclude that Jon Bednall receives more in total compensation than the median of a group of companies in the same market, and of similar size to Epwin Group PLC. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Epwin Group has changed over time.
Is Epwin Group PLC Growing?
Over the last three years Epwin Group PLC has shrunk its earnings per share by an average of 23% per year (measured with a line of best fit). In the last year, its revenue is down -4.0%.
Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.
Has Epwin Group PLC Been A Good Investment?
Since shareholders would have lost about 13% over three years, some Epwin Group PLC shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared the total CEO remuneration paid by Epwin Group PLC, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
Over the same period, investors would have come away with nothing in the way of share price gains. This analysis suggests to us that the CEO is paid too generously! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Epwin Group (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
