In This Article:
Russell Down became the CEO of Speedy Hire Plc (LON:SDY) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. 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.
View our latest analysis for Speedy Hire
How Does Russell Down’s Compensation Compare With Similar Sized Companies?
According to our data, Speedy Hire Plc has a market capitalization of UK£298m, and pays its CEO total annual compensation worth UK£667k. (This number is for the twelve months until 2018). We think total compensation is more important but we note that the CEO salary is lower, at UK£355k. When we examined a selection of companies with market caps ranging from UK£157m to UK£628m, we found the median CEO compensation was UK£678k.
So Russell Down is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Speedy Hire, below.
Is Speedy Hire Plc Growing?
Speedy Hire Plc has increased its earnings per share (EPS) by an average of 99% a year, over the last three years It achieved revenue growth of 5.5% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Speedy Hire Plc Been A Good Investment?
I think that the total shareholder return of 77%, over three years, would leave most Speedy Hire Plc shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
Remuneration for Russell Down is close enough to the median pay for a CEO of a similar sized company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Speedy Hire shares (free trial).
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.