Yahoo Finance Should You Worry About IMI plc’s (LON:IMI) CEO Salary Level?
Mark Selway has been the CEO of IMI plc (LON:IMI) since 2014. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for IMI
How Does Mark Selway’s Compensation Compare With Similar Sized Companies?
According to our data, IMI plc has a market capitalization of UK£2.5b, and pays its CEO total annual compensation worth UK£2.8m. Notably, that’s an increase of 63% over the year before. We examined companies with market caps from UK£1.6b to UK£5.0b, and discovered that the median CEO compensation of that group was UK£2.1m.
As you can see, Mark Selway is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean IMI plc is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at IMI has changed from year to year.
Is IMI plc Growing?
IMI plc has increased its earnings per share (EPS) by an average of 2.4% a year, over the last three years It achieved revenue growth of 4.3% over the last year.
I would argue that the improvement in revenue isn’t particularly impressive, but it is good to see modest EPS growth. Considering these factors I’d say performance has been pretty decent, though not amazing.
You might want to check this free visual report on analyst forecasts for future earnings.
Has IMI plc Been A Good Investment?
IMI plc has served shareholders reasonably well, with a total return of 11% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
In Summary…
We examined the amount IMI plc pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
One might like to have seen stronger growth, and the shareholder returns have failed to inspire, over the last three years. In conclusion we think the company should definitely focus on improving the business before awarding any large pay rises.
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
