Yahoo Finance How Should Investors Feel About Aggreko Plc's (LON:AGK) CEO Pay?
Chris Weston became the CEO of Aggreko Plc (LON:AGK) 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Aggreko
How Does Chris Weston's Compensation Compare With Similar Sized Companies?
According to our data, Aggreko Plc has a market capitalization of UK£2.0b, and pays its CEO total annual compensation worth UK£1.7m. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at UK£750k. When we examined a selection of companies with market caps ranging from UK£1.6b to UK£5.3b, we found the median CEO total compensation was UK£1.9m.
So Chris Weston 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.
The graphic below shows how CEO compensation at Aggreko has changed from year to year.
Is Aggreko Plc Growing?
On average over the last three years, Aggreko Plc has shrunk earnings per share by 2.1% each year (measured with a line of best fit). Its revenue is down -5.9% over last year.
Unfortunately there is a complete lack of earnings per share improvement, over three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Aggreko Plc Been A Good Investment?
Since shareholders would have lost about 19% over three years, some Aggreko Plc shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Chris Weston is paid around what is normal the leaders of comparable size companies.
Returns have been disappointing and the company is not growing its earnings per share. Suffice it to say, we don't think the CEO is underpaid! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Aggreko.
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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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
