Steve Wadey has been the CEO of QinetiQ Group plc (LON:QQ.) since 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Steve Wadey’s Compensation Compare With Similar Sized Companies?
Our data indicates that QinetiQ Group plc is worth UK£1.7b, and total annual CEO compensation is UK£1.5m. (This number is for the twelve months until 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at UK£582k. We looked at a group of companies with market capitalizations from UK£785m to UK£2.5b, and the median CEO compensation was UK£1.5m.
That means Steve Wadey 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.
The graphic below shows how CEO compensation at QinetiQ Group has changed from year to year.
Is QinetiQ Group plc Growing?
Over the last three years QinetiQ Group plc has grown its earnings per share (EPS) by an average of 10% per year. Its revenue is up 5.8% over last year.
This demonstrates that the company has been improving recently. A good result. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
It could be important to check this free visual depiction of what analysts expect for the future.
Has QinetiQ Group plc Been A Good Investment?
QinetiQ Group plc has generated a total shareholder return of 19% over three years, so most shareholders would be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Steve Wadey is paid around the same as most CEOs of similar size companies.
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So upon reflection one could argue that the CEO pay is quite reasonable. Shareholders may want to check for free if QinetiQ Group insiders are buying or selling shares.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.