In 2015 Matt Sassone was appointed CEO of LiDCO Group Plc (LON:LID). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for LiDCO Group
How Does Matt Sassone's Compensation Compare With Similar Sized Companies?
According to our data, LiDCO Group Plc has a market capitalization of UK£10m, and paid its CEO total annual compensation worth UK£262k over the year to January 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£209k. We examined a group of similar sized companies, with market capitalizations of below UK£161m. The median CEO total compensation in that group is UK£253k.
So Matt Sassone is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at LiDCO Group, below.
Is LiDCO Group Plc Growing?
On average over the last three years, LiDCO Group Plc has shrunk earnings per share by 80% each year (measured with a line of best fit). It saw its revenue drop 11% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has LiDCO Group Plc Been A Good Investment?
Since shareholders would have lost about 33% over three years, some LiDCO Group Plc shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Matt Sassone is paid around what is normal the leaders of comparable size companies.
The company isn't growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don't think the CEO is underpaid! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling LiDCO Group (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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