Editor's Opinion by Miles Nolan

In a welcome and transparent move, AIM companies are now required to disclose pay details for each director. Against the headwinds of recession the subject of directors’ pay on AIM should be of great interest to investors. Now in its eighth successive year, our annual survey compiled in conjunction with accountant Deloitte reveals a pleasing air of restraint at board level.   

CEO salaries have held steady whereas FDs have fared a little better, with a small average salary rise that pretty much matches inflation. At a time when most of us are feeling the pinch, total bonuses for CEOs actually increased slightly to £25 million, although one in five did not receive a bonus at all.   

In a welcome and transparent move, AIM companies are now required to disclose pay details for each director. This will clearly create a greater degree of scrutiny and lead to companies being more carefully monitored.

This is also the time of the year when financial journalists gloat about their ‘nap’ recommendations for 2010, so it’s pleasing to report a solid performance from the team at Growth Company Investor. Of our four share tips, we notched up an average gain of a useful 46 per cent, compared with a 32 per cent rise in the AIM index in the same period.   

Staffline was the star performer, almost trebling after a raft of profit upgrades, while Portrait Software succumbed to a bid, Max Property fell a touch and Armour Group suffered due to tough market conditions. This year the team has outlined its ideas for 2011, so let’s hope for another stellar performance.  

On a separate note, I would also like to introduce myself to you as the new editor of Growth Company Investor. With a real passion for smaller companies, I have followed the markets from a very early age. My career has spanned working as a financial journalist for many years, as an analyst and as a fund manager, so I hope to bring continued insight to these pages.   

The small-cap universe is wide and varied, with over 1,200 companies on AIM alone. When searching for undervalued stocks I look for those with high barriers to entry, recurring revenues and strong, sustainable margins. Good cash generation and a solid balance sheet will always catch my attention as will a management team that has the drive, incentive and ambition to succeed.  

As the curtain falls on 2010 and with a long-awaited recovery hoped for, I would like to take this opportunity to wish you an enjoyable festive break and a prosperous and healthy new year.