Yahoo Finance What We Learned About Bonhill Group's (LON:BONH) CEO Pay
Simon Stilwell has been the CEO of Bonhill Group Plc (LON:BONH) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Bonhill Group.
See our latest analysis for Bonhill Group
How Does Total Compensation For Simon Stilwell Compare With Other Companies In The Industry?
At the time of writing, our data shows that Bonhill Group Plc has a market capitalization of UK£12m, and reported total annual CEO compensation of UK£204k for the year to December 2019. We note that's an increase of 24% above last year. It is worth noting that the CEO compensation consists entirely of the salary, worth UK£204k.
For comparison, other companies in the industry with market capitalizations below UK£148m, reported a median total CEO compensation of UK£220k. This suggests that Bonhill Group remunerates its CEO largely in line with the industry average. What's more, Simon Stilwell holds UK£344k worth of shares in the company in their own name.
Component | 2019 | 2018 | Proportion (2019) |
Salary | UK£204k | UK£123k | 100% |
Other | - | UK£41k | - |
Total Compensation | UK£204k | UK£164k | 100% |
Talking in terms of the industry, salary represented approximately 38% of total compensation out of all the companies we analyzed, while other remuneration made up 62% of the pie. Speaking on a company level, Bonhill Group prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Bonhill Group Plc's Growth
Over the past three years, Bonhill Group Plc has seen its earnings per share (EPS) grow by 26% per year. It achieved revenue growth of 20% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Bonhill Group Plc Been A Good Investment?
Given the total shareholder loss of 88% over three years, many shareholders in Bonhill Group Plc are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Bonhill Group pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we touched on above, Bonhill Group 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. At the same time, the company has logged negative shareholder returns over the last three years. But EPS growth is moving in a favorable direction, certainly a positive sign. Overall, we wouldn't say Simon is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 5 warning signs for Bonhill Group (1 makes us a bit uncomfortable!) that you should be aware of before investing here.
Switching gears from Bonhill Group, 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.
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