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This article will reflect on the compensation paid to Bill Mawer who has served as CEO of Image Scan Holdings Plc (LON:IGE) since 2014. This analysis will also assess whether Image Scan Holdings pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for Image Scan Holdings
Comparing Image Scan Holdings Plc's CEO Compensation With the industry
Our data indicates that Image Scan Holdings Plc has a market capitalization of UK£4.0m, and total annual CEO compensation was reported as UK£88k for the year to September 2020. We note that's a decrease of 23% compared to last year. In particular, the salary of UK£81.7k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the industry with market capitalizations under UK£146m, the reported median total CEO compensation was UK£240k. Accordingly, Image Scan Holdings pays its CEO under the industry median. Furthermore, Bill Mawer directly owns UK£154k worth of shares in the company.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | UK£82k | UK£106k | 93% |
| Other | UK£5.9k | UK£7.9k | 7% |
| Total Compensation | UK£88k | UK£114k | 100% |
On an industry level, roughly 78% of total compensation represents salary and 22% is other remuneration. Image Scan Holdings is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Image Scan Holdings Plc's Growth Numbers
Image Scan Holdings Plc has reduced its earnings per share by 39% a year over the last three years. In the last year, its revenue is up 47%.
The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Image Scan Holdings Plc Been A Good Investment?
With a three year total loss of 31% for the shareholders, Image Scan Holdings Plc would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
As we touched on above, Image Scan Holdings Plc is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But Image Scan Holdings has recorded negative shareholder returns and EPS growth over the last three years. On the flip side, recent revenue growth has been positive. Although it's fair to say CEO compensation is modest, shareholders might want to see healthier investor returns before thinking Bill deserves a raise.