Yahoo Finance Is Charles Stanley Group PLC's (LON:CAY) CEO Paid At A Competitive Rate?
Paul Abberley has been the CEO of Charles Stanley Group PLC (LON:CAY) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Charles Stanley Group
How Does Paul Abberley's Compensation Compare With Similar Sized Companies?
According to our data, Charles Stanley Group PLC has a market capitalization of UK£141m, and paid its CEO total annual compensation worth UK£749k over the year to March 2019. We think total compensation is more important but we note that the CEO salary is lower, at UK£362k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£79m to UK£318m. The median total CEO compensation was UK£575k.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Charles Stanley Group. On a sector level, around 67% of total compensation represents salary and 33% is other remuneration. Our data reveals that Charles Stanley Group allocates salary in line with the wider market.
Thus we can conclude that Paul Abberley receives more in total compensation than the median of a group of companies in the same market, and of similar size to Charles Stanley Group PLC. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous. You can see, below, how CEO compensation at Charles Stanley Group has changed over time.
Is Charles Stanley Group PLC Growing?
On average over the last three years, Charles Stanley Group PLC has seen earnings per share (EPS) move in a favourable direction by 30% each year (using a line of best fit). Its revenue is up 5.7% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.
Has Charles Stanley Group PLC Been A Good Investment?
Given the total loss of 4.5% over three years, many shareholders in Charles Stanley Group PLC are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared total CEO remuneration at Charles Stanley Group PLC with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. While EPS is moving in the right direction, we'd say shareholders would want better returns before the CEO is paid much more. On another note, we've spotted 2 warning signs for Charles Stanley Group that investors should look into moving forward.
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.
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.
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. Thank you for reading.
