Yahoo Finance This Is The Reason Why We Think Cordel Group Plc's (LON:CRDL) CEO Might Be Underpaid
The solid performance at Cordel Group Plc (LON:CRDL) has been impressive and shareholders will probably be pleased to know that CEO Nick Smith has delivered. At the upcoming AGM on 17 November 2022, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.
Check out our latest analysis for Cordel Group
How Does Total Compensation For Nick Smith Compare With Other Companies In The Industry?
According to our data, Cordel Group Plc has a market capitalization of UK£12m, and paid its CEO total annual compensation worth UK£112k over the year to June 2022. That is, the compensation was roughly the same as last year. Notably, the salary of UK£112k is the entirety of the CEO compensation.
For comparison, other companies in the industry with market capitalizations below UK£172m, reported a median total CEO compensation of UK£254k. Accordingly, Cordel Group pays its CEO under the industry median. What's more, Nick Smith holds UK£1.7m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2022 | 2021 | Proportion (2022) |
Salary | UK£112k | UK£105k | 100% |
Other | - | UK£6.8k | - |
Total Compensation | UK£112k | UK£112k | 100% |
Speaking on an industry level, nearly 63% of total compensation represents salary, while the remainder of 37% is other remuneration. Speaking on a company level, Cordel Group prefers to tread along a traditional path, disbursing all compensation through a salary. 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.
Cordel Group Plc's Growth
Cordel Group Plc's earnings per share (EPS) grew 47% per year over the last three years. Its revenue is up 34% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Cordel Group Plc Been A Good Investment?
We think that the total shareholder return of 400%, over three years, would leave most Cordel Group Plc shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Cordel Group pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Given the improved performance, shareholders may be more forgiving of CEO compensation in the upcoming AGM. In saying that, some shareholders may feel that the more important issues to be addressed may be how the management plans to steer the company towards sustainable profitability in the future.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 4 warning signs for Cordel Group you should be aware of, and 1 of them shouldn't be ignored.
Important note: Cordel Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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