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The impressive results at MobilityOne Limited (LON:MBO) recently will be great news for shareholders. At the upcoming AGM on 13 October 2021, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.
Check out our latest analysis for MobilityOne
Comparing MobilityOne Limited's CEO Compensation With the industry
At the time of writing, our data shows that MobilityOne Limited has a market capitalization of UK£15m, and reported total annual CEO compensation of UK£128k for the year to December 2020. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at UK£82.4k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations under UK£148m, the reported median total CEO compensation was UK£206k. That is to say, Hussain Bin A. Rahman is paid under the industry median. What's more, Hussain Bin A. Rahman holds UK£7.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | UK£82k | UK£84k | 64% |
| Other | UK£46k | UK£46k | 36% |
| Total Compensation | UK£128k | UK£130k | 100% |
On an industry level, roughly 68% of total compensation represents salary and 32% is other remuneration. Although there is a difference in how total compensation is set, MobilityOne more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at MobilityOne Limited's Growth Numbers
MobilityOne Limited has seen its earnings per share (EPS) increase by 46% a year over the past three years. It achieved revenue growth of 22% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has MobilityOne Limited Been A Good Investment?
We think that the total shareholder return of 294%, over three years, would leave most MobilityOne Limited 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.