Yahoo Finance How Much Did TP Group plc's (LON:TPG) CEO Pocket Last Year?
Phil Cartmell is the CEO of TP Group plc (LON:TPG). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for TP Group
How Does Phil Cartmell's Compensation Compare With Similar Sized Companies?
Our data indicates that TP Group plc is worth UK£59m, and total annual CEO compensation was reported as UK£489k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at UK£285k. We examined a group of similar sized companies, with market capitalizations of below UK£154m. The median CEO total compensation in that group is UK£250k.
As you can see, Phil Cartmell is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean TP 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 a visual representation of the CEO compensation at TP Group, below.
Is TP Group plc Growing?
TP Group plc has increased its earnings per share (EPS) by an average of 15% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 47%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has TP Group plc Been A Good Investment?
TP Group plc has generated a total shareholder return of 19% 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 compared total CEO remuneration at TP Group plc with the amount paid at companies with a similar market capitalization. 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. We also note that, over the same time frame, shareholder returns haven't been bad. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at TP Group.
Important note: TP 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.
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