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The CEO of Morses Club PLC (LON:MCL) is Paul Smith. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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.
How Does Paul Smith's Compensation Compare With Similar Sized Companies?
According to our data, Morses Club PLC has a market capitalization of UK£188m, and pays its CEO total annual compensation worth UK£709k. (This number is for the twelve months until February 2019). We note that's an increase of 40% above last year. While we always look at total compensation first, we note that the salary component is less, at UK£293k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£79m to UK£315m. The median total CEO compensation was UK£545k.
Thus we can conclude that Paul Smith receives more in total compensation than the median of a group of companies in the same market, and of similar size to Morses Club PLC. However, this doesn't necessarily mean the pay 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 a visual representation of the CEO compensation at Morses Club, below.
Is Morses Club PLC Growing?
Over the last three years Morses Club PLC has grown its earnings per share (EPS) by an average of 32% per year (using a line of best fit). Revenue was pretty flat on last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.
Has Morses Club PLC Been A Good Investment?
Most shareholders would probably be pleased with Morses Club PLC for providing a total return of 74% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We compared total CEO remuneration at Morses Club PLC with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Whatever your view on compensation, you might want to check if insiders are buying or selling Morses Club shares (free trial).
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 firstname.lastname@example.org. 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.