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Why Altyn Plc's (LON:ALTN) CEO Pay Matters To You

In 2012 Aidar Assaubayev was appointed CEO of Altyn Plc (LON:ALTN). 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Altyn

How Does Aidar Assaubayev's Compensation Compare With Similar Sized Companies?

According to our data, Altyn Plc has a market capitalization of UK£16m, and paid its CEO total annual compensation worth US$84k over the year to December 2018. Notably, the salary of US$84k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$325k.

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This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see a visual representation of the CEO compensation at Altyn, below.

LSE:ALTN CEO Compensation, February 10th 2020
LSE:ALTN CEO Compensation, February 10th 2020

Is Altyn Plc Growing?

On average over the last three years, Altyn Plc has grown earnings per share (EPS) by 48% each year (using a line of best fit). Its revenue is down 33% over last year.

This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Altyn Plc Been A Good Investment?

Given the total loss of 65% over three years, many shareholders in Altyn Plc are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

It looks like Altyn Plc pays its CEO less than similar sized companies.

Considering the underlying business is growing earnings, this would suggest the pay is modest. Few would deny that the total shareholder return over the last three years could have been a lot better. So while we would not say that Aidar Assaubayev is generously paid, it would be good to see an improvement in business performance before too an increase in pay. In this case we may want to look deeper into the company. There are some real positives and we could see improved returns in the longer term. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Altyn.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.

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. Thank you for reading.