In This Article:
In 2003 Duncan Penny was appointed CEO of XP Power Limited (LON:XPP). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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.
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How Does Duncan Penny's Compensation Compare With Similar Sized Companies?
Our data indicates that XP Power Limited is worth UK£487m, and total annual CEO compensation is UK£684k. (This is based on the year to December 2018). That's a notable increase of 29% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£390k. We looked at a group of companies with market capitalizations from UK£313m to UK£1.3b, and the median CEO total compensation was UK£848k.
That means Duncan Penny receives fairly typical remuneration for the CEO of a company that size. 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 a visual representation of the CEO compensation at XP Power, below.
Is XP Power Limited Growing?
Over the last three years XP Power Limited has grown its earnings per share (EPS) by an average of 19% per year (using a line of best fit). Its revenue is up 17% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.
Has XP Power Limited Been A Good Investment?
I think that the total shareholder return of 69%, over three years, would leave most XP Power Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Duncan Penny is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if XP Power insiders are buying or selling shares.