In 2015, Ian Manocha was appointed CEO of Gresham Technologies plc (LON:GHT). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Gresham Technologies

How Does Ian Manocha's Compensation Compare With Similar Sized Companies?

According to our data, Gresham Technologies plc has a market capitalization of UK£88m, and paid its CEO total annual compensation worth UK£395k over the year to December 2019. We note that's an increase of 13% above last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£261k. We examined a group of similar sized companies, with market capitalizations of below UK£161m. The median CEO total compensation in that group is UK£272k.

Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Gresham Technologies stands. Talking in terms of the sector, salary represented approximately 71% of total compensation out of all the companies we analysed, while other remuneration made up 29% of the pie. So it seems like there isn't a significant difference between Gresham Technologies and the broader market, in terms of salary allocation in the overall compensation package.

Thus we can conclude that Ian Manocha receives more in total compensation than the median of a group of companies in the same market, and of similar size to Gresham Technologies plc. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous. You can see, below, how CEO compensation at Gresham Technologies has changed over time.

Is Gresham Technologies plc Growing?

Over the last three years Gresham Technologies plc has shrunk its earnings per share by an average of 88% per year (measured with a line of best fit). It achieved revenue growth of 30% over the last year.

As investors, we are a bit wary of companies that have lower earnings per share, over three years. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. You might want to check this free visual report on analyst forecasts for future earnings.

Has Gresham Technologies plc Been A Good Investment?

Since shareholders would have lost about 13% over three years, some Gresham Technologies plc shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We examined the amount Gresham Technologies plc pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. This doesn't look great when you consider CEO remuneration is up on last year. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. Looking into other areas, we've picked out 1 warning sign for Gresham Technologies that investors should think about before committing capital to this stock.

If you want to buy a stock that is better than Gresham Technologies, this free list of high return, low debt companies is a great place to look.

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.

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