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Is Pittards plc's (LON:PTD) CEO Paid Enough Relative To Peers?

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Reg Hankey has been the CEO of Pittards plc (LON:PTD) since 2007. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Pittards

How Does Reg Hankey's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Pittards plc has a market cap of UK£10m, and is paying total annual CEO compensation of UK£220k. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at UK£205k. We took a group of companies with market capitalizations below UK£161m, and calculated the median CEO total compensation to be UK£253k.

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That means Reg Hankey receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Pittards, below.

AIM:PTD CEO Compensation, July 17th 2019
AIM:PTD CEO Compensation, July 17th 2019

Is Pittards plc Growing?

Earnings per share at Pittards plc are much the same as they were three years ago, albeit with a positive trend. It saw its revenue drop -6.0% over the last year.

I would prefer it if there was revenue growth, but I'm happy with the modest EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. It could be important to check this free visual depiction of what analysts expect for the future.

Has Pittards plc Been A Good Investment?

Given the total loss of 19% over three years, many shareholders in Pittards plc are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Reg Hankey is paid around the same as most CEOs of similar size companies.

The company cannot boast particularly strong per share growth. And we think the shareholder returns - over three years - have been underwhelming. So it would take a bold person to suggest the pay is too modest. Shareholders may want to check for free if Pittards insiders are buying or selling shares.

If you want to buy a stock that is better than Pittards, this free list of high return, low debt companies is a great place to look.

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.