Yahoo Finance Is ReNeuron Group plc's (LON:RENE) CEO Salary Justified?
In 2014 Olav Hellebø was appointed CEO of ReNeuron Group plc (LON:RENE). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
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Check out our latest analysis for ReNeuron Group
How Does Olav Hellebø's Compensation Compare With Similar Sized Companies?
According to our data, ReNeuron Group plc has a market capitalization of UK£86m, and pays its CEO total annual compensation worth UK£440k. (This number is for the twelve months until March 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£345k. We examined a group of similar sized companies, with market capitalizations of below UK£154m. The median CEO total compensation in that group is UK£238k.
Thus we can conclude that Olav Hellebø receives more in total compensation than the median of a group of companies in the same market, and of similar size to ReNeuron Group plc. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at ReNeuron Group has changed over time.
Is ReNeuron Group plc Growing?
Over the last three years ReNeuron Group plc has shrunk its earnings per share by an average of 3.8% per year (measured with a line of best fit). In the last year, its revenue changed by just -0.2%.
Sadly for shareholders, earnings per share are actually down, over 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. Shareholders might be interested in this free visualization of analyst forecasts.
Has ReNeuron Group plc Been A Good Investment?
Given the total loss of 19% over three years, many shareholders in ReNeuron Group 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...
We compared total CEO remuneration at ReNeuron Group plc with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.
Just as bad, share price gains for investors have failed to materialize, over the same period. This analysis suggests to us that the CEO is paid too generously! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at ReNeuron Group.
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.
