Yahoo Finance Is Shield Therapeutics plc (LON:STX) Excessively Paying Its CEO?
In 2008 Carl Sterritt was appointed CEO of Shield Therapeutics plc (LON:STX). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Shield Therapeutics
How Does Carl Sterritt's Compensation Compare With Similar Sized Companies?
Our data indicates that Shield Therapeutics plc is worth UK£183m, and total annual CEO compensation is UK£642k. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at UK£301k. We examined companies with market caps from UK£82m to UK£330m, and discovered that the median CEO total compensation of that group was UK£538k.
So Carl Sterritt is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Shield Therapeutics has changed over time.
Is Shield Therapeutics plc Growing?
Shield Therapeutics plc has increased its earnings per share (EPS) by an average of 36% a year, over the last three years (using a line of best fit). It achieved revenue growth of 1314% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.
Has Shield Therapeutics plc Been A Good Investment?
Given the total loss of 1.0% over three years, many shareholders in Shield Therapeutics plc are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Carl Sterritt is paid around what is normal the leaders of comparable size companies.
We think that the EPS growth is very pleasing, but it's disappointing to see negative shareholder returns over three years. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Shield Therapeutics (free visualization of insider trades).
Important note: Shield Therapeutics 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.
