Yahoo Finance Is Elegant Hotels Group Plc’s (LON:EHG) CEO Salary Justified?
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Sunil Chatrani has been the CEO of Elegant Hotels Group Plc (LON:EHG) since 2012. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Elegant Hotels Group
How Does Sunil Chatrani’s Compensation Compare With Similar Sized Companies?
According to our data, Elegant Hotels Group Plc has a market capitalization of UK£65m, and pays its CEO total annual compensation worth US$336k. (This is based on the year to 2018). That’s below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at US$300k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$315k.
So Sunil Chatrani is paid around the average of the companies we looked at. 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 Elegant Hotels Group has changed over time.
Is Elegant Hotels Group Plc Growing?
On average over the last three years, Elegant Hotels Group Plc has grown earnings per share (EPS) by 5.8% each year (using a line of best fit). Its revenue is up 5.0% over last year.
I would argue that the improvement in revenue isn’t particularly impressive, but it is good to see modest EPS growth. Considering these factors I’d say performance has been pretty decent, though not amazing. Shareholders might be interested in this free visualization of analyst forecasts.
Has Elegant Hotels Group Plc Been A Good Investment?
Since shareholders would have lost about 18% over three years, some Elegant Hotels Group Plc shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
Sunil Chatrani is paid around what is normal the leaders of comparable size companies.
The company cannot boast particularly strong per share growth. And it’s hard to argue that the returns over the last three years have delighted. So many would argue that the CEO is certainly not underpaid. Shareholders may want to check for free if Elegant Hotels Group insiders are buying or selling shares.
Important note: Elegant Hotels Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
