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Does Iofina plc's (LON:IOF) CEO Pay Matter?

Tom Becker has been the CEO of Iofina plc (LON:IOF) 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. 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.

Check out our latest analysis for Iofina

How Does Tom Becker's Compensation Compare With Similar Sized Companies?

Our data indicates that Iofina plc is worth UK£49m, and total annual CEO compensation was reported as US$251k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$211k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$327k.

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That means Tom Becker receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at Iofina, below.

AIM:IOF CEO Compensation, January 19th 2020
AIM:IOF CEO Compensation, January 19th 2020

Is Iofina plc Growing?

Over the last three years Iofina plc has grown its earnings per share (EPS) by an average of 16% per year (using a line of best fit). Its revenue is up 20% over last year.

This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. You might want to check this free visual report on analyst forecasts for future earnings.

Has Iofina plc Been A Good Investment?

Boasting a total shareholder return of 164% over three years, Iofina 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.

In Summary...

Tom Becker 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. Indeed, many might consider the pay rather modest, given the solid company performance! Shareholders may want to check for free if Iofina insiders are buying or selling shares.

If you want to buy a stock that is better than Iofina, this free list of high return, low debt companies is a great place to look.

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.

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. Thank you for reading.