Yahoo Finance Does Tavistock Investments PLC's (LON:TAVI) CEO Pay Reflect Performance?
The CEO of Tavistock Investments PLC (LON:TAVI) is Brian Raven. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.
See our latest analysis for Tavistock Investments
How Does Brian Raven's Compensation Compare With Similar Sized Companies?
According to our data, Tavistock Investments PLC has a market capitalization of UK£12m, and paid its CEO total annual compensation worth UK£289k over the year to March 2019. We think total compensation is more important but we note that the CEO salary is lower, at UK£220k. We looked at a group of companies with market capitalizations under UK£153m, and the median CEO total compensation was UK£248k.
That means Brian Raven 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 Tavistock Investments, below.
Is Tavistock Investments PLC Growing?
Tavistock Investments PLC has increased its earnings per share (EPS) by an average of 135% a year, over the last three years (using a line of best fit). Its revenue is down 9.4% over last year.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Tavistock Investments PLC Been A Good Investment?
Since shareholders would have lost about 30% over three years, some Tavistock Investments PLC shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Brian Raven is paid around what is normal the leaders of comparable size companies.
We'd say the company can boast of its EPS growth, but it's disappointing to see negative shareholder returns over three years. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. Whatever your view on compensation, you might want to check if insiders are buying or selling Tavistock Investments shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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