Yahoo Finance Is Triad Group plc's (LON:TRD) CEO Paid At A Competitive Rate?
Adrian Leer is the CEO of Triad Group plc (LON:TRD). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Triad Group
How Does Adrian Leer's Compensation Compare With Similar Sized Companies?
Our data indicates that Triad Group plc is worth UK£4.4m, and total annual CEO compensation was reported as UK£234k for the year to March 2019. We think total compensation is more important but we note that the CEO salary is lower, at UK£167k. We looked at a group of companies with market capitalizations under UK£159m, and the median CEO total compensation was UK£265k.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Triad Group. Talking in terms of the sector, salary represented approximately 64% of total compensation out of all the companies we analysed, while other remuneration made up 36% of the pie. Our data reveals that Triad Group allocates salary in line with the wider market.
So Adrian Leer is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance. You can see a visual representation of the CEO compensation at Triad Group, below.
Is Triad Group plc Growing?
Triad Group plc has reduced its earnings per share by an average of 37% a year, over the last three years (measured with a line of best fit). Its revenue is down 22% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Triad Group plc Been A Good Investment?
With a three year total loss of 63%, Triad Group plc would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Remuneration for Adrian Leer is close enough to the median pay for a CEO of a similar sized company .
The company isn't growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don't think the CEO is underpaid! Taking a breather from CEO compensation, we've spotted 3 warning signs for Triad Group (of which 1 makes us a bit uncomfortable!) you should know about in order to have a holistic understanding of the stock.
If you want to buy a stock that is better than Triad Group, this free list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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