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Is IGas Energy plc’s (LON:IGAS) CEO Incentives Align With Yours?

Steve Bowler has been the CEO of IGas Energy plc (LON:IGAS) 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. 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.

Check out our latest analysis for IGas Energy

How Does Steve Bowler’s Compensation Compare With Similar Sized Companies?

Our data indicates that IGas Energy plc is worth UK£131m, and total annual CEO compensation is UK£397k. That’s a notable increase of 38% on last year. When we examined a selection of companies with market caps ranging from UK£78m to UK£312m, we found the median CEO compensation was UK£481k.

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So Steve Bowler is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at IGas Energy, below.

AIM:IGAS CEO Compensation October 28th 18
AIM:IGAS CEO Compensation October 28th 18

Is IGas Energy plc Growing?

IGas Energy plc has increased its earnings per share (EPS) by an average of 80% a year, over the last three years In the last year, its revenue is up 14%.

This demonstrates that the company has been improving recently. A good result. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has IGas Energy plc Been A Good Investment?

Given the total loss of 74% over three years, many shareholders in IGas Energy 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 Steve Bowler is close enough to the median pay for a CEO of a similar sized company .

We’d say the company can boast of its EPS growth, but we find the returns over the last three years to be lacking. 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. Whatever your view on compensation, you might want to check if insiders are buying or selling IGas Energy plc shares (free trial).

Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .

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 editorial-team@simplywallst.com.