Yahoo Finance How Much Is Limitless Earth plc (LON:LME) Paying Its CEO?
Guido Contesso has been the CEO of Limitless Earth plc (LON:LME) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Limitless Earth.
Check out our latest analysis for Limitless Earth
How Does Total Compensation For Guido Contesso Compare With Other Companies In The Industry?
At the time of writing, our data shows that Limitless Earth plc has a market capitalization of UK£9.0m, and reported total annual CEO compensation of UK£70k for the year to January 2020. This means that the compensation hasn't changed much from last year. It is worth noting that the CEO compensation consists entirely of the salary, worth UK£70k.
In comparison with other companies in the industry with market capitalizations under UK£150m, the reported median total CEO compensation was UK£250k. This suggests that Guido Contesso is paid below the industry median. What's more, Guido Contesso holds UK£342k worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2020 | 2019 | Proportion (2020) |
Salary | UK£70k | UK£70k | 100% |
Other | - | - | - |
Total Compensation | UK£70k | UK£70k | 100% |
On an industry level, around 49% of total compensation represents salary and 51% is other remuneration. Speaking on a company level, Limitless Earth prefers to tread along a traditional path, disbursing all compensation through a salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Limitless Earth plc's Growth
Over the past three years, Limitless Earth plc has seen its earnings per share (EPS) grow by 20% per year. It saw its revenue drop 20% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Limitless Earth plc Been A Good Investment?
We think that the total shareholder return of 206%, over three years, would leave most Limitless Earth plc shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
Limitless Earth rewards its CEO solely through a salary, ignoring non-salary benefits completely. As previously discussed, Guido is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. When taking into account the company's strong EPS growth over the past three years, it appears CEO compensation is modest. Given the strong history of shareholder returns, the shareholders are probably very happy with Guido's performance.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 3 warning signs for Limitless Earth you should be aware of, and 2 of them are concerning.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
