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Here's What We Think About Audioboom Group plc's (LON:BOOM) CEO Pay

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Rob Proctor has been the CEO of Audioboom Group plc (LON:BOOM) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Audioboom Group

How Does Rob Proctor's Compensation Compare With Similar Sized Companies?

According to our data, Audioboom Group plc has a market capitalization of UK£30m, and pays its CEO total annual compensation worth UK£225k. (This number is for the twelve months until November 2017). While we always look at total compensation first, we note that the salary component is less, at UK£150k. We examined a group of similar sized companies, with market capitalizations of below UK£152m. The median CEO total compensation in that group is UK£237k.

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So Rob Proctor receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 Audioboom Group has changed from year to year.

AIM:BOOM CEO Compensation, May 5th 2019
AIM:BOOM CEO Compensation, May 5th 2019

Is Audioboom Group plc Growing?

On average over the last three years, Audioboom Group plc has grown earnings per share (EPS) by 28% each year (using a line of best fit). Its revenue is up 96% over last year.

This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Audioboom Group plc Been A Good Investment?

Given the total loss of 20% over three years, many shareholders in Audioboom Group plc are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Remuneration for Rob Proctor is close enough to the median pay for a CEO of a similar sized company .

We think that the EPS growth is very pleasing, but it's disappointing to see negative shareholder returns over three years. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. So you may want to check if insiders are buying Audioboom Group 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.

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.