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Is Bango plc (LON:BGO) Excessively Paying Its CEO?

In This Article:

The CEO of Bango plc (LON:BGO) is Ray Anderson. 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. 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.

See our latest analysis for Bango

How Does Ray Anderson's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Bango plc has a market cap of UK£104m, and is paying total annual CEO compensation of UK£222k. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£165k. We looked at a group of companies with market capitalizations under UK£160m, and the median CEO total compensation was UK£255k.

That means Ray Anderson receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see, below, how CEO compensation at Bango has changed over time.

AIM:BGO CEO Compensation, September 19th 2019
AIM:BGO CEO Compensation, September 19th 2019

Is Bango plc Growing?

Over the last three years Bango plc has grown its earnings per share (EPS) by an average of 26% per year (using a line of best fit). It achieved revenue growth of 64% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has Bango plc Been A Good Investment?

I think that the total shareholder return of 62%, over three years, would leave most Bango plc shareholders smiling. 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.

In Summary...

Ray Anderson is paid around what is normal the leaders of comparable size companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Bango (free visualization of insider trades).

If you want to buy a stock that is better than Bango, this free list of high return, low debt companies is a great place to look.

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.