Yahoo Finance How Much Did Renew Holdings plc's (LON:RNWH) CEO Pocket Last Year?
Paul Scott has been the CEO of Renew Holdings plc (LON:RNWH) 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.
Check out our latest analysis for Renew Holdings
How Does Paul Scott's Compensation Compare With Similar Sized Companies?
According to our data, Renew Holdings plc has a market capitalization of UK£300m, and pays its CEO total annual compensation worth UK£663k. (This is based on the year to September 2018). While we always look at total compensation first, we note that the salary component is less, at UK£283k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£154m to UK£618m. The median total CEO compensation was UK£629k.
So Paul Scott 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.
You can see, below, how CEO compensation at Renew Holdings has changed over time.
Is Renew Holdings plc Growing?
On average over the last three years, Renew Holdings plc has shrunk earnings per share by 14% each year (measured with a line of best fit). In the last year, its revenue changed by just -0.6%.
Unfortunately, earnings per share have trended lower over the last three years. And the flat revenue is seriously uninspiring. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Renew Holdings plc Been A Good Investment?
Renew Holdings plc has served shareholders reasonably well, with a total return of 11% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
Paul Scott is paid around what is normal the leaders of comparable size companies.
The company isn't growing earnings per share, and nor have the total returns inspired us. We're not saying the CEO pay is too generous, but one might argue that the company should improve returns to shareholders before increasing it. So you may want to check if insiders are buying Renew Holdings 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.
