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Is SpaceandPeople plc's (LON:SAL) CEO Paid Enough Relative To Peers?

Simply Wall St

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The CEO of SpaceandPeople plc (LON:SAL) is Matthew Bending. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for SpaceandPeople

How Does Matthew Bending's Compensation Compare With Similar Sized Companies?

According to our data, SpaceandPeople plc has a market capitalization of UK£2.5m, and pays its CEO total annual compensation worth UK£162k. (This is based on the year to December 2018). That's less than last year. While we always look at total compensation first, we note that the salary component is less, at UK£149k. We examined a group of similar sized companies, with market capitalizations of below UK£158m. The median CEO total compensation in that group is UK£248k.

A first glance this seems like a real positive for shareholders, since Matthew Bending is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.

You can see, below, how CEO compensation at SpaceandPeople has changed over time.

AIM:SAL CEO Compensation, May 28th 2019

Is SpaceandPeople plc Growing?

SpaceandPeople plc has reduced its earnings per share by an average of 38% a year, over the last three years (measured with a line of best fit). It saw its revenue drop -21% over the last year.

Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.

Has SpaceandPeople plc Been A Good Investment?

Since shareholders would have lost about 72% over three years, some SpaceandPeople plc shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

It appears that SpaceandPeople plc remunerates its CEO below most similar sized companies.

Matthew Bending is paid less than CEOs of similar size companies, but the company isn't growing and total shareholder returns have been disappointing. We would not call the pay too generous, but nor would we claim the CEO is underpaid, given lacklustre business performance. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling SpaceandPeople (free visualization of insider trades).

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.