Yahoo Finance Is On the Beach Group plc's (LON:OTB) CEO Pay Fair?
Simon Cooper is the CEO of On the Beach Group plc (LON:OTB). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for On the Beach Group
How Does Simon Cooper's Compensation Compare With Similar Sized Companies?
Our data indicates that On the Beach Group plc is worth UK£509m, and total annual CEO compensation was reported as UK£316k for the year to September 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£203k. When we examined a selection of companies with market caps ranging from UK£325m to UK£1.3b, we found the median CEO total compensation was UK£926k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at On the Beach Group has changed from year to year.
Is On the Beach Group plc Growing?
Over the last three years On the Beach Group plc has grown its earnings per share (EPS) by an average of 36% per year (using a line of best fit). It achieved revenue growth of 35% over the last year.
This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Shareholders might be interested in this free visualization of analyst forecasts.
Has On the Beach Group plc Been A Good Investment?
Most shareholders would probably be pleased with On the Beach Group plc for providing a total return of 112% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
It appears that On the Beach Group plc remunerates its CEO below most similar sized companies.
Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Simon Cooper deserves a raise! Most shareholders like to see a modestly paid CEO combined with strong performance by the company. The cherry on top would be if company insiders are buying shares with their own money. Shareholders may want to check for free if On the Beach Group insiders are buying or selling shares.
If you want to buy a stock that is better than On the Beach Group, this free list of high return, low debt companies is a great place to look.
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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.
