Avi Tooba became the CEO of Mobile Tornado Group plc (LON:MBT) in 2016, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Mobile Tornado Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Comparing Mobile Tornado Group plc's CEO Compensation With the industry
Our data indicates that Mobile Tornado Group plc has a market capitalization of UK£18m, and total annual CEO compensation was reported as UK£156k for the year to December 2019. That's just a smallish increase of 6.1% on last year. Notably, the salary which is UK£113.0k, represents most of the total compensation being paid.
For comparison, other companies in the industry with market capitalizations below UK£157m, reported a median total CEO compensation of UK£277k. This suggests that Avi Tooba is paid below the industry median. Furthermore, Avi Tooba directly owns UK£194k worth of shares in the company.
Speaking on an industry level, nearly 66% of total compensation represents salary, while the remainder of 34% is other remuneration. Our data reveals that Mobile Tornado Group allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Mobile Tornado Group plc's Growth Numbers
Mobile Tornado Group plc's earnings per share (EPS) grew 51% per year over the last three years. Revenue was pretty flat on last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Mobile Tornado Group plc Been A Good Investment?
Since shareholders would have lost about 45% over three years, some Mobile Tornado Group plc investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.
As we touched on above, Mobile Tornado Group plc is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Importantly though, the company has impressed with its EPS growth over three years. Considering EPS are on the up, we would say Avi is compensated fairly. But we believe shareholders would want to see healthier returns before the CEO gets a raise.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for Mobile Tornado Group that investors should look into moving forward.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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