Yahoo Finance How Much Does Cloudcall Group's (LON:CALL) CEO Make?
This article will reflect on the compensation paid to Simon Cleaver who has served as CEO of Cloudcall Group plc (LON:CALL) since 2016. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Cloudcall Group.
Check out our latest analysis for Cloudcall Group
How Does Total Compensation For Simon Cleaver Compare With Other Companies In The Industry?
At the time of writing, our data shows that Cloudcall Group plc has a market capitalization of UK£37m, and reported total annual CEO compensation of UK£226k for the year to December 2019. We note that's an increase of 16% above last year. We note that the salary portion, which stands at UK£204.0k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations under UK£147m, the reported median total CEO compensation was UK£226k. This suggests that Cloudcall Group remunerates its CEO largely in line with the industry average. Moreover, Simon Cleaver also holds UK£906k worth of Cloudcall Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2019 | 2018 | Proportion (2019) |
Salary | UK£204k | UK£192k | 90% |
Other | UK£22k | UK£2.0k | 10% |
Total Compensation | UK£226k | UK£194k | 100% |
On an industry level, around 48% of total compensation represents salary and 52% is other remuneration. Cloudcall Group pays out 90% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Cloudcall Group plc's Growth
Over the past three years, Cloudcall Group plc has seen its earnings per share (EPS) grow by 6.0% per year. Its revenue is up 20% over the last year.
This revenue growth could really point to a brighter future. And the modest growth in EPS isn't bad, either. So while performance isn't amazing, we think it really does seem quite respectable. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Cloudcall Group plc Been A Good Investment?
With a three year total loss of 25% for the shareholders, Cloudcall Group plc would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
As we noted earlier, Cloudcall Group pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, Cloudcall Group is suffering from adverse shareholder returns and althoughEPS have grown over the past three years, they have not been extraordinary. Although we wouldn't say CEO compensation is exceptionally high, it isn't very low either. Shareholders might want to see substantial improvements in returns before agreeing that Simon deserves a raise.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Cloudcall Group that investors should be aware of in a dynamic business environment.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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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