Yahoo Finance Should You Worry About Amino Technologies plc's (LON:AMO) CEO Pay Cheque?
Don McGarva has been the CEO of Amino Technologies plc (LON:AMO) since 2011. 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 - 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.
Check out our latest analysis for Amino Technologies
How Does Don McGarva's Compensation Compare With Similar Sized Companies?
According to our data, Amino Technologies plc has a market capitalization of UK£109m, and paid its CEO total annual compensation worth US$516k over the year to November 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$399k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$327k.
It would therefore appear that Amino Technologies plc pays Don McGarva more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Amino Technologies has changed over time.
Is Amino Technologies plc Growing?
Over the last three years Amino Technologies plc has grown its earnings per share (EPS) by an average of 42% per year (using a line of best fit). In the last year, its revenue is down 5.8%.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. Shareholders might be interested in this free visualization of analyst forecasts.
Has Amino Technologies plc Been A Good Investment?
Given the total loss of 15% over three years, many shareholders in Amino Technologies plc are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We examined the amount Amino Technologies plc pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. So you may want to check if insiders are buying Amino Technologies shares with their own money (free access).
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.
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.
