Yahoo Finance Should You Worry About Blue Prism Group plc's (LON:PRSM) CEO Pay Cheque?
The CEO of Blue Prism Group plc (LON:PRSM) is Alastair Bathgate. First, this article will compare CEO compensation with compensation at similar sized companies. 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 process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Blue Prism Group
How Does Alastair Bathgate's Compensation Compare With Similar Sized Companies?
Our data indicates that Blue Prism Group plc is worth UK£766m, and total annual CEO compensation was reported as UK£375k for the year to October 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£200k. We looked at a group of companies with market capitalizations from UK£323m to UK£1.3b, and the median CEO total compensation was UK£927k.
Most shareholders would consider it a positive that Alastair Bathgate takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. 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 Blue Prism Group has changed over time.
Is Blue Prism Group plc Growing?
On average over the last three years, Blue Prism Group plc has shrunk earnings per share by 78% each year (measured with a line of best fit). Its revenue is up 91% over last year.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has Blue Prism Group plc Been A Good Investment?
Boasting a total shareholder return of 247% over three years, Blue Prism Group 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...
Blue Prism Group plc is currently paying its CEO below what is normal for companies of its size.
It's well worth noting that while Alastair Bathgate is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. So you may want to check if insiders are buying Blue Prism Group shares with their own money (free access).
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.
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.
