The CEO of Applegreen plc (LON:APGN) is Bob Etchingham. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Applegreen
How Does Bob Etchingham's Compensation Compare With Similar Sized Companies?
According to our data, Applegreen plc has a market capitalization of UK£608m, and paid its CEO total annual compensation worth €568k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €367k. When we examined a selection of companies with market caps ranging from €360m to €1.4b, we found the median CEO total compensation was €1.1m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Applegreen has changed from year to year.
Is Applegreen plc Growing?
Over the last three years Applegreen plc has shrunk its earnings per share by an average of 17% per year (measured with a line of best fit). Its revenue is up 64% over last year.
The reduction in earnings per share, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. You might want to check this free visual report on analyst forecasts for future earnings.
Has Applegreen plc Been A Good Investment?
Applegreen plc has generated a total shareholder return of 27% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
It appears that Applegreen plc remunerates its CEO below most similar sized companies.
Bob Etchingham receives relatively low remuneration compared to similar sized companies. But the company isn't exactly firing on all cylinders, from my perspective. But on this analysis I see no issue with the CEO compensation. Shareholders may want to check for free if Applegreen insiders are buying or selling shares.