Here's What We Think About Motorpoint Group's (LON:MOTR) CEO Pay

Mark Carpenter has been the CEO of Motorpoint Group plc (LON:MOTR) since 2013, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Motorpoint Group

Comparing Motorpoint Group plc's CEO Compensation With the industry

According to our data, Motorpoint Group plc has a market capitalization of UK£244m, and paid its CEO total annual compensation worth UK£410k over the year to March 2020. We note that's an increase of 43% above last year. In particular, the salary of UK£274.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between UK£157m and UK£630m had a median total CEO compensation of UK£605k. This suggests that Mark Carpenter is paid below the industry median. Furthermore, Mark Carpenter directly owns UK£24m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 68% of total compensation represents salary and 32% is other remuneration. Although there is a difference in how total compensation is set, Motorpoint Group more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Motorpoint Group plc's Growth

Motorpoint Group plc has seen its earnings per share (EPS) increase by 24% a year over the past three years. In the last year, its revenue is down 3.8%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Motorpoint Group plc Been A Good Investment?

Boasting a total shareholder return of 116% over three years, Motorpoint Group plc has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

As we noted earlier, Motorpoint Group pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Since EPS growth is heading in a positive direction; many would agree with our assessment that the pay is modest. Given the strong history of shareholder returns, the shareholders are probably very happy with Mark's performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Motorpoint Group that you should be aware of before investing.

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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