Yahoo Finance Is Clipper Logistics plc (LON:CLG) Excessively Paying Its CEO?
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Tony Mannix has been the CEO of Clipper Logistics plc (LON:CLG) since 1970. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Clipper Logistics
How Does Tony Mannix's Compensation Compare With Similar Sized Companies?
Our data indicates that Clipper Logistics plc is worth UK£294m, and total annual CEO compensation is UK£614k. (This is based on the year to April 2018). We think total compensation is more important but we note that the CEO salary is lower, at UK£260k. We examined companies with market caps from UK£159m to UK£635m, and discovered that the median CEO total compensation of that group was UK£667k.
That means Tony Mannix receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Clipper Logistics has changed over time.
Is Clipper Logistics plc Growing?
Over the last three years Clipper Logistics plc has grown its earnings per share (EPS) by an average of 17% per year (using a line of best fit). It achieved revenue growth of 14% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Clipper Logistics plc Been A Good Investment?
With a total shareholder return of 10.0% over three years, Clipper Logistics plc has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
Tony Mannix is paid around the same as most CEOs of similar size companies.
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So upon reflection one could argue that the CEO pay is quite reasonable. So you may want to check if insiders are buying Clipper Logistics shares with their own money (free access).
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.
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.
