The CEO of Science in Sport plc (LON:SIS) is Steve Moon, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Science in Sport pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Comparing Science in Sport plc's CEO Compensation With the industry
Our data indicates that Science in Sport plc has a market capitalization of UK£39m, and total annual CEO compensation was reported as UK£706k for the year to December 2019. That's a notable decrease of 30% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£286k.
On comparing similar-sized companies in the industry with market capitalizations below UK£150m, we found that the median total CEO compensation was UK£265k. Hence, we can conclude that Steve Moon is remunerated higher than the industry median. What's more, Steve Moon holds UK£268k worth of shares in the company in their own name.
Talking in terms of the industry, salary represented approximately 20% of total compensation out of all the companies we analyzed, while other remuneration made up 80% of the pie. It's interesting to note that Science in Sport pays out a greater portion of remuneration through salary, compared to the industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Science in Sport plc's Growth
Over the past three years, Science in Sport plc has seen its earnings per share (EPS) grow by 24% per year. In the last year, its revenue is up 36%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Science in Sport plc Been A Good Investment?
Since shareholders would have lost about 62% over three years, some Science in Sport plc investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.
As we touched on above, Science in Sport plc is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, the EPS growth is certainly impressive, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Although we don't think the CEO pay is too high, considering negative investor returns, it is more generous than modest.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 4 warning signs for Science in Sport (1 doesn't sit too well with us!) that you should be aware of before investing here.
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.
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