Yahoo Finance What Did Cohort's (LON:CHRT) CEO Take Home Last Year?
Andy Thomis has been the CEO of Cohort plc (LON:CHRT) since 2009, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Cohort pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for Cohort
Comparing Cohort plc's CEO Compensation With the industry
Our data indicates that Cohort plc has a market capitalization of UK£255m, and total annual CEO compensation was reported as UK£487k for the year to April 2020. That's just a smallish increase of 6.5% on last year. Notably, the salary which is UK£260.8k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations ranging from UK£146m to UK£584m, the reported median CEO total compensation was UK£487k. So it looks like Cohort compensates Andy Thomis in line with the median for the industry. Moreover, Andy Thomis also holds UK£1.2m worth of Cohort stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2020 | 2019 | Proportion (2020) |
Salary | UK£261k | UK£246k | 54% |
Other | UK£226k | UK£211k | 46% |
Total Compensation | UK£487k | UK£457k | 100% |
Speaking on an industry level, nearly 42% of total compensation represents salary, while the remainder of 58% is other remuneration. According to our research, Cohort has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Cohort plc's Growth Numbers
Over the past three years, Cohort plc has seen its earnings per share (EPS) grow by 16% per year. It saw its revenue drop 12% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Cohort plc Been A Good Investment?
Boasting a total shareholder return of 90% over three years, Cohort plc has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
To Conclude...
As we touched on above, Cohort plc is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Few would be critical of the leadership, since returns have been juicy and EPS are moving in the right direction. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Cohort that investors should be aware of in a dynamic business environment.
Switching gears from Cohort, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
