Yahoo Finance Is Sophos Group plc’s (LON:SOPH) CEO Paid At A Competitive Rate?
Kris Hagerman has been the CEO of Sophos Group plc (LON:SOPH) since 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. 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.
See our latest analysis for Sophos Group
How Does Kris Hagerman’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Sophos Group plc has a market cap of UK£2.3b, and is paying total annual CEO compensation of US$9m. We note that’s an increase of 275% above last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$2m.
As you can see, Kris Hagerman is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Sophos 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 Sophos Group, below.
Is Sophos Group plc Growing?
Sophos Group plc has increased its earnings per share (EPS) by an average of 16% a year, over the last three years In the last year, its revenue is up 21%.
This demonstrates that the company has been improving recently. A good result. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Sophos Group plc Been A Good Investment?
Boasting a total shareholder return of 83% over three years, Sophos Group plc has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
We examined the amount Sophos Group plc pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Sophos Group plc (free visualization of insider trades).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
