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Our Take On Cohort plc's (LON:CHRT) CEO Salary

Andy Thomis became the CEO of Cohort plc (LON:CHRT) in 2009. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Cohort

How Does Andy Thomis's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Cohort plc has a market cap of UK£202m, and reported total annual CEO compensation of UK£457k for the year to April 2019. We think total compensation is more important but we note that the CEO salary is lower, at UK£246k. We looked at a group of companies with market capitalizations from UK£80m to UK£319m, and the median CEO total compensation was UK£578k.

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Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Cohort stands. Talking in terms of the sector, salary represented approximately 42% of total compensation out of all the companies we analysed, while other remuneration made up 58% of the pie. Our data reveals that Cohort allocates salary in line with the wider market.

So Andy Thomis is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. You can see a visual representation of the CEO compensation at Cohort, below.

AIM:CHRT CEO Compensation April 15th 2020
AIM:CHRT CEO Compensation April 15th 2020

Is Cohort plc Growing?

Cohort plc has seen earnings per share (EPS) move positively by an average of 13% a year, over the last three years (using a line of best fit). It achieved revenue growth of 34% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.

Has Cohort plc Been A Good Investment?

With a total shareholder return of 22% over three years, Cohort plc shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Andy Thomis 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. Looking into other areas, we've picked out 1 warning sign for Cohort that investors should think about before committing capital to this stock.

If you want to buy a stock that is better than Cohort, this free list of high return, low debt companies is a great place to look.

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.