Yahoo Finance How Should Investors Feel About Plant Health Care plc's (LON:PHC) CEO Pay?
Chris Richards has been the CEO of Plant Health Care plc (LON:PHC) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Plant Health Care
How Does Chris Richards's Compensation Compare With Similar Sized Companies?
Our data indicates that Plant Health Care plc is worth UK£12m, and total annual CEO compensation was reported as US$406k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$133k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$314k.
So Chris Richards is paid around the average of 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.
You can see a visual representation of the CEO compensation at Plant Health Care, below.
Is Plant Health Care plc Growing?
Over the last three years Plant Health Care plc has grown its earnings per share (EPS) by an average of 46% per year (using a line of best fit). In the last year, its revenue is up 5.8%.
This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.
Has Plant Health Care plc Been A Good Investment?
With a three year total loss of 68%, Plant Health Care plc would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Remuneration for Chris Richards 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. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. So you may want to check if insiders are buying Plant Health Care 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.
