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In 2007 Andy Pendlebury was appointed CEO of RTC Group plc (LON:RTC). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.

View our latest analysis for RTC Group

How Does Andy Pendlebury's Compensation Compare With Similar Sized Companies?

According to our data, RTC Group plc has a market capitalization of UK£8.4m, and pays its CEO total annual compensation worth UK£482k. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at UK£260k. We looked at a group of companies with market capitalizations under UK£160m, and the median CEO total compensation was UK£253k.

As you can see, Andy Pendlebury is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean RTC Group 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 RTC Group has changed from year to year.

Is RTC Group plc Growing?

RTC Group plc has increased its earnings per share (EPS) by an average of 8.5% a year, over the last three years (using a line of best fit). It achieved revenue growth of 22% over the last year.

I would argue that the modest growth in revenue is a notable positive. And, while modest, the earnings per share growth is noticeable. So while performance isn't amazing, we think it really does seem quite respectable. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has RTC Group plc Been A Good Investment?

RTC Group plc has generated a total shareholder return of 4.3% over three years, so most shareholders wouldn't be too disappointed. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

We compared the total CEO remuneration paid by RTC Group plc, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

We generally prefer to see stronger EPS growth, and we're not particularly impressed with the total shareholder return, over the last three years. In conclusion we think the company should definitely focus on improving the business before awarding any large pay rises. So you may want to check if insiders are buying RTC Group shares with their own money (free access).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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. Thank you for reading.