Yahoo Finance How Much is Yü Group's (LON:YU.) CEO Getting Paid?
The CEO of Yü Group PLC (LON:YU.) is Bobby Kalar, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Yü Group.
See our latest analysis for Yü Group
Comparing Yü Group PLC's CEO Compensation With the industry
At the time of writing, our data shows that Yü Group PLC has a market capitalization of UK£16m, and reported total annual CEO compensation of UK£241k for the year to December 2019. We note that's a small decrease of 7.3% on last year. In particular, the salary of UK£231.0k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the industry with market capitalizations below UK£152m, reported a median total CEO compensation of UK£241k. From this we gather that Bobby Kalar is paid around the median for CEOs in the industry. Furthermore, Bobby Kalar directly owns UK£8.7m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2019 | 2018 | Proportion (2019) |
Salary | UK£231k | UK£250k | 96% |
Other | UK£10k | UK£10k | 4% |
Total Compensation | UK£241k | UK£260k | 100% |
Speaking on an industry level, nearly 62% of total compensation represents salary, while the remainder of 38% is other remuneration. Yü Group has gone down a largely traditional route, paying Bobby Kalar a high salary, giving it preference over non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Yü Group PLC's Growth Numbers
Over the last three years, Yü Group PLC has shrunk its earnings per share by 67% per year. In the last year, its revenue is down 3.0%.
Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Yü Group PLC Been A Good Investment?
Given the total shareholder loss of 87% over three years, many shareholders in Yü Group PLC are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Yü Group pays its CEO a majority of compensation through a salary. As previously discussed, Bobby is compensated close to the median for companies of its size, and which belong to the same industry. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 3 warning signs for Yü Group that investors should be aware of in a dynamic business environment.
Switching gears from Yü 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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