Jon Bednall became the CEO of Epwin Group PLC (LON:EPWN) in 2013. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Jon Bednall's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Epwin Group PLC has a market cap of UK£145m, and reported total annual CEO compensation of UK£410k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at UK£250k. We looked at a group of companies with market capitalizations from UK£77m to UK£309m, and the median CEO total compensation was UK£504k.
That means Jon Bednall receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Epwin Group, below.
Is Epwin Group PLC Growing?
On average over the last three years, Epwin Group PLC has shrunk earnings per share by 24% each year (measured with a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
Unfortunately, earnings per share have trended lower over the last three years. And the flat revenue is seriously uninspiring. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has Epwin Group PLC Been A Good Investment?
Epwin Group PLC has generated a total shareholder return of 4.7% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.
Remuneration for Jon Bednall is close enough to the median pay for a CEO of a similar sized company .
The company isn't growing earnings per share, and nor have the total returns inspired us. We wouldn't say the CEO pay is too high, but one might argue that the company should improve returns to shareholders before increasing it. Whatever your view on compensation, you might want to check if insiders are buying or selling Epwin Group 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.
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.
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