Yahoo Finance How Is Toople's (LON:TOOP) CEO Compensated?
This article will reflect on the compensation paid to Andy Hollingworth who has served as CEO of Toople Plc (LON:TOOP) since 2016. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Toople.
Check out our latest analysis for Toople
How Does Total Compensation For Andy Hollingworth Compare With Other Companies In The Industry?
At the time of writing, our data shows that Toople Plc has a market capitalization of UK£2.3m, and reported total annual CEO compensation of UK£78k for the year to September 2019. We note that's an increase of 30% above last year. We note that the salary portion, which stands at UK£60.0k constitutes the majority of total compensation received by the CEO.
On comparing similar-sized companies in the industry with market capitalizations below UK£152m, we found that the median total CEO compensation was UK£226k. This suggests that Andy Hollingworth is paid below the industry median.
Component | 2019 | 2018 | Proportion (2019) |
Salary | UK£60k | UK£60k | 77% |
Other | UK£18k | - | 23% |
Total Compensation | UK£78k | UK£60k | 100% |
Talking in terms of the industry, salary represented approximately 46% of total compensation out of all the companies we analyzed, while other remuneration made up 54% of the pie. According to our research, Toople has allocated a higher percentage of pay to salary in comparison to the wider industry. 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 Toople Plc's Growth Numbers
Toople Plc has seen its earnings per share (EPS) increase by 86% a year over the past three years. In the last year, its revenue is up 51%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Toople Plc Been A Good Investment?
With a three year total loss of 94% for the shareholders, Toople Plc would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
As we touched on above, Toople Plc is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, the EPS growth over three years is certainly impressive. Considering EPS are on the up, we would say Andy is compensated fairly. Shareholders, though, would ideally like to see shareholder returns head north before they agree to any raise.
CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 6 warning signs for Toople (of which 4 are a bit concerning!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from Toople, 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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