Yahoo Finance Here's What We Think About easyHotel plc's (LON:EZH) CEO Pay
Guy Paul Parsons has been the CEO of easyHotel plc (LON:EZH) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for easyHotel
How Does Guy Paul Parsons's Compensation Compare With Similar Sized Companies?
Our data indicates that easyHotel plc is worth UK£113m, and total annual CEO compensation is UK£402k. (This figure is for the year to September 2018). We think total compensation is more important but we note that the CEO salary is lower, at UK£236k. We took a group of companies with market capitalizations below UK£153m, and calculated the median CEO total compensation to be UK£238k.
Thus we can conclude that Guy Paul Parsons receives more in total compensation than the median of a group of companies in the same market, and of similar size to easyHotel plc. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at easyHotel, below.
Is easyHotel plc Growing?
On average over the last three years, easyHotel plc has shrunk earnings per share by 19% each year (measured with a line of best fit). Its revenue is up 34% over last year.
Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. You might want to check this free visual report on analyst forecasts for future earnings.
Has easyHotel plc Been A Good Investment?
With a three year total loss of 22%, easyHotel plc would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We examined the amount easyHotel plc pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling easyHotel (free visualization of insider trades).
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.
