In 2012 Gerard Ryan was appointed CEO of International Personal Finance plc (LON:IPF). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for International Personal Finance
How Does Gerard Ryan’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that International Personal Finance plc has a market cap of UK£466m, and is paying total annual CEO compensation of UK£1.1m. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at UK£505k. When we examined a selection of companies with market caps ranging from UK£157m to UK£629m, we found the median CEO compensation was UK£688k.
As you can see, Gerard Ryan is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean International Personal Finance plc is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at International Personal Finance has changed from year to year.
Is International Personal Finance plc Growing?
International Personal Finance plc has reduced its earnings per share by an average of 10% a year, over the last three years. It achieved revenue growth of 6.0% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has International Personal Finance plc Been A Good Investment?
International Personal Finance plc has generated a total shareholder return of 0.1% over three years, so most shareholders wouldn’t be too disappointed. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We compared total CEO remuneration at International Personal Finance plc with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
While shareholder returns are acceptable, they don’t delight. So you may want to delve deeper, because we don’t think the CEO pay is too low. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling International Personal Finance (free visualization of insider trades).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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 firstname.lastname@example.org.