Yahoo Finance How Should Investors React To Intertek Group plc’s (LON:ITRK) CEO Pay?
In 2015 André Pierre Lacroix was appointed CEO of Intertek Group plc (LON:ITRK). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
See our latest analysis for Intertek Group
How Does André Pierre Lacroix’s Compensation Compare With Similar Sized Companies?
According to our data, Intertek Group plc has a market capitalization of UK£7.1b, and pays its CEO total annual compensation worth UK£12m. Notably, that’s an increase of 115% over the year before. When we examined a selection of companies with market caps ranging from UK£3.1b to UK£9.2b, we found the median CEO compensation was UK£3m.
As you can see, André Pierre Lacroix is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Intertek Group plc is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Intertek Group has changed over time.
Is Intertek Group plc Growing?
Intertek Group plc has increased its earnings per share (EPS) by an average of 73% a year, over the last three years In the last year, its revenue changed by just 0.4%.
This demonstrates that the company has been improving recently. A good result. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Intertek Group plc Been A Good Investment?
Most shareholders would probably be pleased with Intertek Group plc for providing a total return of 78% over three years. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
We examined the amount Intertek Group plc pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Intertek Group plc.
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
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.
