Yahoo Finance Is Christie Group plc's (LON:CTG) CEO Paid At A Competitive Rate?
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David Rugg became the CEO of Christie Group plc (LON:CTG) in 2000. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Christie Group
How Does David Rugg's Compensation Compare With Similar Sized Companies?
According to our data, Christie Group plc has a market capitalization of UK£24m, and pays its CEO total annual compensation worth UK£571k. (This number is for the twelve months until December 2018). That's a notable increase of 14% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£450k. We took a group of companies with market capitalizations below UK£158m, and calculated the median CEO total compensation to be UK£251k.
As you can see, David Rugg is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Christie Group plc is paying too much. 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 a visual representation of the CEO compensation at Christie Group, below.
Is Christie Group plc Growing?
On average over the last three years, Christie Group plc has grown earnings per share (EPS) by 30% each year (using a line of best fit). Its revenue is up 6.2% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Christie Group plc Been A Good Investment?
Christie Group plc has generated a total shareholder return of 3.5% over three years, so most shareholders wouldn't be too disappointed. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
We examined the amount Christie Group plc pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. We also think investors are doing ok, over the same time period. While it may be worth researching further, we don't see a problem with the CEO pay, given the good EPS growth. Whatever your view on compensation, you might want to check if insiders are buying or selling Christie Group shares (free trial).
If you want to buy a stock that is better than Christie Group, this free list of high return, low debt companies is a great place to look.
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.
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.