Yahoo Finance A Quick Analysis On Clear Leisure's (LON:CLP) CEO Compensation
Francesco Gardin became the CEO of Clear Leisure plc (LON:CLP) in 2015, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Clear Leisure pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
See our latest analysis for Clear Leisure
Comparing Clear Leisure plc's CEO Compensation With the industry
Our data indicates that Clear Leisure plc has a market capitalization of UK£1.7m, and total annual CEO compensation was reported as €134k for the year to December 2019. Notably, that's a decrease of 54% over the year before. Notably, the salary of €134k is the entirety of the CEO compensation.
For comparison, other companies in the industry with market capitalizations below UK£154m, reported a median total CEO compensation of €276k. In other words, Clear Leisure pays its CEO lower than the industry median.
Component | 2019 | 2018 | Proportion (2019) |
Salary | €134k | €294k | 100% |
Other | - | - | - |
Total Compensation | €134k | €294k | 100% |
Speaking on an industry level, nearly 49% of total compensation represents salary, while the remainder of 51% is other remuneration. Speaking on a company level, Clear Leisure prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Clear Leisure plc's Growth Numbers
Over the last three years, Clear Leisure plc has shrunk its earnings per share by 37% per year. In the last year, its revenue is up 8.3%.
Overall this is not a very positive result for shareholders. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Clear Leisure plc Been A Good Investment?
Given the total shareholder loss of 73% over three years, many shareholders in Clear Leisure plc are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
Clear Leisure pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we touched on above, Clear Leisure plc is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. EPS growth has failed to impress us, and the same can be said about shareholder returns. It's tough to say that Francesco is earning a very high compensation, but shareholders will likely want to see healthier investor returns before agreeing that a raise is in order.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 2 which are concerning) in Clear Leisure we think you should know about.
Switching gears from Clear Leisure, 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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