Yahoo Finance Our Take On Tristel Plc's (LON:TSTL) CEO Salary
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Paul Swinney became the CEO of Tristel Plc (LON:TSTL) in 1993. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Tristel
How Does Paul Swinney's Compensation Compare With Similar Sized Companies?
Our data indicates that Tristel Plc is worth UK£137m, and total annual CEO compensation is UK£324k. (This number is for the twelve months until June 2018). While we always look at total compensation first, we note that the salary component is less, at UK£230k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£77m to UK£309m. The median total CEO compensation was UK£505k.
A first glance this seems like a real positive for shareholders, since Paul Swinney is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Tristel, below.
Is Tristel Plc Growing?
Over the last three years Tristel Plc has grown its earnings per share (EPS) by an average of 18% per year (using a line of best fit). It achieved revenue growth of 11% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.
Has Tristel Plc Been A Good Investment?
Boasting a total shareholder return of 183% over three years, Tristel Plc has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
It appears that Tristel Plc remunerates its CEO below most similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Paul Swinney deserves a raise!
It's not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Tristel.
Important note: Tristel 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.
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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.
