Yahoo Finance Should You Be Pleased About The CEO Pay At President Energy Plc's (LON:PPC)
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Peter Levine has been the CEO of President Energy Plc (LON:PPC) since 2015. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for President Energy
How Does Peter Levine's Compensation Compare With Similar Sized Companies?
According to our data, President Energy Plc has a market capitalization of UK£80m, and pays its CEO total annual compensation worth US$586k. (This is based on the year to December 2018). That's a modest increase of 5.4% on the prior year year. Notably, the salary of US$586k 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$322k.
As you can see, Peter Levine is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean President Energy Plc is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at President Energy has changed from year to year.
Is President Energy Plc Growing?
Over the last three years President Energy Plc has grown its earnings per share (EPS) by an average of 71% per year (using a line of best fit). Its revenue is up 163% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. It could be important to check this free visual depiction of what analysts expect for the future.
Has President Energy Plc Been A Good Investment?
With a total shareholder return of 1.1% over three years, President Energy Plc has done okay by shareholders. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
We compared total CEO remuneration at President Energy Plc with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. Looking at the same time period, we think that the shareholder returns are respectable. While it may be worth researching further, we don't see a problem with the CEO pay, given the good EPS growth. So you may want to check if insiders are buying President Energy shares with their own money (free access).
Important note: President Energy may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
