The CEO of Surface Transforms Plc (LON:SCE) is Kevin Johnson. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Kevin Johnson's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Surface Transforms Plc has a market cap of UK£19m, and is paying total annual CEO compensation of UK£152k. (This is based on the year to May 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth UK£145k. We took a group of companies with market capitalizations below UK£153m, and calculated the median CEO total compensation to be UK£238k.
A first glance this seems like a real positive for shareholders, since Kevin Johnson is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at Surface Transforms has changed from year to year.
Is Surface Transforms Plc Growing?
Surface Transforms Plc has reduced its earnings per share by an average of 8.2% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 50%.
The reduction in earnings per share, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. You might want to check this free visual report on analyst forecasts for future earnings.
Has Surface Transforms Plc Been A Good Investment?
Since shareholders would have lost about 21% over three years, some Surface Transforms Plc shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
It looks like Surface Transforms Plc pays its CEO less than similar sized companies.
Kevin Johnson is paid less than CEOs of similar size companies, but growth hasn't been particularly impressive and the total shareholder return over three years would leave many disappointed. Many shareholders would probably like to see improvements, but our analysis does not suggest that CEO compensation is too generous. So you may want to check if insiders are buying Surface Transforms shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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