Yahoo Finance Is Cohort plc's (LON:CHRT) CEO Salary Justified?
Andy Thomis became the CEO of Cohort plc (LON:CHRT) in 2009. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.
View our latest analysis for Cohort
How Does Andy Thomis's Compensation Compare With Similar Sized Companies?
Our data indicates that Cohort plc is worth UK£221m, and total annual CEO compensation was reported as UK£457k for the year to April 2019. That's a modest increase of 2.3% on the prior year year. We think total compensation is more important but we note that the CEO salary is lower, at UK£246k. We examined companies with market caps from UK£78m to UK£312m, and discovered that the median CEO total compensation of that group was UK£504k.
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.
Is Cohort plc Growing?
Cohort plc has increased its earnings per share (EPS) by an average of 2.6% a year, over the last three years (using a line of best fit). It achieved revenue growth of 9.6% over the last year.
I would argue that the improvement in revenue isn't particularly impressive, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. You might want to check this free visual report on analyst forecasts for future earnings.
Has Cohort plc Been A Good Investment?
Most shareholders would probably be pleased with Cohort plc for providing a total return of 70% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Andy Thomis is paid around what is normal the leaders of comparable size companies.
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So considering most shareholders would be happy, we'd say the CEO pay is appropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling Cohort shares (free trial).
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.
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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.
