Is Inland Homes plc's (LON:INL) CEO Paid At A Competitive Rate?

Stephen Wicks is the CEO of Inland Homes plc (LON:INL). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Inland Homes

How Does Stephen Wicks's Compensation Compare With Similar Sized Companies?

According to our data, Inland Homes plc has a market capitalization of UK£163m, and paid its CEO total annual compensation worth UK£472k over the year to June 2018. We think total compensation is more important but we note that the CEO salary is lower, at UK£348k. We examined companies with market caps from UK£78m to UK£313m, and discovered that the median CEO total compensation of that group was UK£519k.

So Stephen Wicks 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.

You can see, below, how CEO compensation at Inland Homes has changed over time.

AIM:INL CEO Compensation, November 9th 2019
AIM:INL CEO Compensation, November 9th 2019

Is Inland Homes plc Growing?

On average over the last three years, Inland Homes plc has shrunk earnings per share by 36% each year (measured with a line of best fit). Its revenue is up 15% over last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. You might want to check this free visual report on analyst forecasts for future earnings.

Has Inland Homes plc Been A Good Investment?

Boasting a total shareholder return of 54% over three years, Inland Homes plc has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Stephen Wicks is paid around the same as most CEOs of similar size companies.

The company isn't growing earnings per share, but shareholder returns have been strong over the last three years. So we think most shareholders wouldn't be too worried about CEO compensation, which is close to the median for similar sized companies. So you may want to check if insiders are buying Inland Homes shares with their own money (free access).