Yahoo Finance How Is Intercede Group's (LON:IGP) CEO Paid Relative To Peers?
This article will reflect on the compensation paid to Klaas van der Leest who has served as CEO of Intercede Group plc (LON:IGP) since 2018. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Intercede Group.
Check out our latest analysis for Intercede Group
Comparing Intercede Group plc's CEO Compensation With the industry
According to our data, Intercede Group plc has a market capitalization of UK£39m, and paid its CEO total annual compensation worth UK£331k over the year to March 2020. We note that's a decrease of 19% compared to last year. Notably, the salary which is UK£200.0k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under UK£152m, the reported median total CEO compensation was UK£270k. So it looks like Intercede Group compensates Klaas van der Leest in line with the median for the industry. Moreover, Klaas van der Leest also holds UK£42k worth of Intercede Group stock directly under their own name.
Component | 2020 | 2019 | Proportion (2020) |
Salary | UK£200k | UK£194k | 60% |
Other | UK£131k | UK£216k | 40% |
Total Compensation | UK£331k | UK£410k | 100% |
On an industry level, around 66% of total compensation represents salary and 34% is other remuneration. Intercede Group is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Intercede Group plc's Growth
Intercede Group plc has seen its earnings per share (EPS) increase by 98% a year over the past three years. Its revenue is up 2.4% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Intercede Group plc Been A Good Investment?
Boasting a total shareholder return of 189% over three years, Intercede Group 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.
In Summary...
As previously discussed, Klaas is compensated close to the median for companies of its size, and which belong to the same industry. Few would be critical of the leadership, since returns have been juicy and EPS are moving in the right direction. Indeed, many might consider that Klaas is compensated rather modestly, given the solid company performance! In fact, shareholders might even think the CEO deserves a raise as a reward due to the fantastic returns generated.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 2 warning signs (and 1 which shouldn't be ignored) in Intercede Group we think you should know about.
Important note: Intercede Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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