In 2016 Pete Kear was appointed CEO of D4t4 Solutions Plc (LON:D4T4). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for D4t4 Solutions
How Does Pete Kear's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that D4t4 Solutions Plc has a market cap of UK£91m, and is paying total annual CEO compensation of UK£390k. (This number is for the twelve months until March 2019). Notably, that's an increase of 19% over the year before. While we always look at total compensation first, we note that the salary component is less, at UK£177k. We looked at a group of companies with market capitalizations under UK£162m, and the median CEO total compensation was UK£256k.
As you can see, Pete Kear is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean D4t4 Solutions 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.
You can see a visual representation of the CEO compensation at D4t4 Solutions, below.
Is D4t4 Solutions Plc Growing?
Over the last three years D4t4 Solutions Plc has grown its earnings per share (EPS) by an average of 25% per year (using a line of best fit). It achieved revenue growth of 37% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. 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 D4t4 Solutions Plc Been A Good Investment?
Boasting a total shareholder return of 83% over three years, D4t4 Solutions Plc has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
We compared the total CEO remuneration paid by D4t4 Solutions Plc, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if D4t4 Solutions insiders are buying or selling shares.