Yahoo Finance Is Mirada Plc (LON:MIRA) Overpaying Its CEO?
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In 2004 José-Luis Vázquez Antolínez was appointed CEO of Mirada Plc (LON:MIRA). First, this article will compare CEO compensation with compensation at similar sized companies. 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 Mirada
How Does José-Luis Vázquez Antolínez's Compensation Compare With Similar Sized Companies?
Our data indicates that Mirada Plc is worth UK£6.0m, and total annual CEO compensation is US$279k. (This number is for the twelve months until March 2018). Notably, the salary of US$266k is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$310k.
So José-Luis Vázquez Antolínez 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, below, how CEO compensation at Mirada has changed over time.
Is Mirada Plc Growing?
Mirada Plc has reduced its earnings per share by an average of 55% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 34% over the last year.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Mirada Plc Been A Good Investment?
Given the total loss of 85% over three years, many shareholders in Mirada Plc are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Remuneration for José-Luis Vázquez Antolínez is close enough to the median pay for a CEO of a similar sized company .
The per share growth could be better, in our view. And shareholder returns have been disappointing over the last three years. So suffice it to say we don't think the compensation is modest. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Mirada (free visualization of insider trades).
If you want to buy a stock that is better than Mirada, this free list of high return, low debt companies is a great place to look.
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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.
