Yahoo Finance Is Rotala PLC's (LON:ROL) CEO Being Overpaid?
Simon Dunn is the CEO of Rotala PLC (LON:ROL). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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.
View our latest analysis for Rotala
How Does Simon Dunn's Compensation Compare With Similar Sized Companies?
Our data indicates that Rotala PLC is worth UK£27m, and total annual CEO compensation was reported as UK£299k for the year to November 2018. While we always look at total compensation first, we note that the salary component is less, at UK£284k. We examined a group of similar sized companies, with market capitalizations of below UK£153m. The median CEO total compensation in that group is UK£250k.
So Simon Dunn is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Rotala has changed over time.
Is Rotala PLC Growing?
Rotala PLC has increased its earnings per share (EPS) by an average of 15% a year, over the last three years (using a line of best fit). Its revenue is up 13% over last year.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Rotala PLC Been A Good Investment?
Rotala PLC has served shareholders reasonably well, with a total return of 14% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
Remuneration for Simon Dunn is close enough to the median pay for a CEO of a similar sized company .
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So upon reflection one could argue that the CEO pay is quite reasonable. Shareholders may want to check for free if Rotala insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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