Yahoo Finance How Much is Clinigen Group plc's (LON:CLIN) CEO Getting Paid?
In 2016 Shaun Chilton was appointed CEO of Clinigen Group plc (LON:CLIN). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Clinigen Group
How Does Shaun Chilton's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Clinigen Group plc has a market cap of UK£1.2b, and reported total annual CEO compensation of UK£2.6m for the year to June 2019. That's a notable increase of 113% on last year. While we always look at total compensation first, we note that the salary component is less, at UK£600k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations from UK£750m to UK£2.4b, and the median CEO total compensation was UK£1.4m.
It would therefore appear that Clinigen Group plc pays Shaun Chilton more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Clinigen Group has changed over time.
Is Clinigen Group plc Growing?
On average over the last three years, Clinigen Group plc has grown earnings per share (EPS) by 12% each year (using a line of best fit). It achieved revenue growth of 20% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.
Has Clinigen Group plc Been A Good Investment?
Clinigen Group plc has generated a total shareholder return of 22% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
We examined the amount Clinigen 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 we must not forget that the EPS growth has been very strong over three years. We also note that, over the same time frame, shareholder returns haven't been bad. While it may be worth researching further, we don't see a problem with the CEO pay, given the good EPS growth. Shareholders may want to check for free if Clinigen Group insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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