Key Things To Understand About Mortgage Advice Bureau (Holdings)'s (LON:MAB1) CEO Pay Cheque

The CEO of Mortgage Advice Bureau (Holdings) plc (LON:MAB1) is Peter Christopher Brodnicki, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Mortgage Advice Bureau (Holdings).

See our latest analysis for Mortgage Advice Bureau (Holdings)

Comparing Mortgage Advice Bureau (Holdings) plc's CEO Compensation With the industry

According to our data, Mortgage Advice Bureau (Holdings) plc has a market capitalization of UK£376m, and paid its CEO total annual compensation worth UK£667k over the year to December 2019. Notably, that's an increase of 34% over the year before. Notably, the salary which is UK£377.1k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations ranging from UK£157m to UK£627m, the reported median CEO total compensation was UK£805k. From this we gather that Peter Christopher Brodnicki is paid around the median for CEOs in the industry. What's more, Peter Christopher Brodnicki holds UK£101m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 49% of total compensation represents salary, while the remainder of 51% is other remuneration. Mortgage Advice Bureau (Holdings) pays out 57% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Mortgage Advice Bureau (Holdings) plc's Growth Numbers

Over the past three years, Mortgage Advice Bureau (Holdings) plc has seen its earnings per share (EPS) grow by 3.3% per year. It achieved revenue growth of 17% over the last year.

We think the revenue growth is good. And the improvement in EPSis modest but respectable. Although we'll stop short of calling the stock a top performer, we think the company has potential. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Mortgage Advice Bureau (Holdings) plc Been A Good Investment?

We think that the total shareholder return of 60%, over three years, would leave most Mortgage Advice Bureau (Holdings) plc shareholders smiling. 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, Mortgage Advice Bureau (Holdings) pays its CEO in line with similar-sized companies belonging to the same industry. But the business isn't reporting great numbers in terms of EPS growth. Meanwhile, shareholder returns have remained positive over the same time frame. We would like to see EPS growth from the business, although we wouldn't say the CEO compensation is high.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Mortgage Advice Bureau (Holdings) that investors should think about before committing capital to this stock.

Important note: Mortgage Advice Bureau (Holdings) is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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