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Should You Worry About Getech Group Plc's (LON:GTC) CEO Salary Level?

Jonathan Copus has been the CEO of Getech Group Plc (LON:GTC) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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 Getech Group

How Does Jonathan Copus's Compensation Compare With Similar Sized Companies?

According to our data, Getech Group Plc has a market capitalization of UK£8.5m, and paid its CEO total annual compensation worth UK£276k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at UK£250k. We examined a group of similar sized companies, with market capitalizations of below UK£152m. The median CEO total compensation in that group is UK£250k.

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So Jonathan Copus is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

The graphic below shows how CEO compensation at Getech Group has changed from year to year.

AIM:GTC CEO Compensation, February 1st 2020
AIM:GTC CEO Compensation, February 1st 2020

Is Getech Group Plc Growing?

Over the last three years Getech Group Plc has shrunk its earnings per share by an average of 58% per year (measured with a line of best fit). Revenue was pretty flat on last year.

Sadly for shareholders, earnings per share are actually down, over three years. And the flat revenue hardly impresses. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. You might want to check this free visual report on analyst forecasts for future earnings.

Has Getech Group Plc Been A Good Investment?

Since shareholders would have lost about 44% over three years, some Getech Group Plc shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Remuneration for Jonathan Copus is close enough to the median pay for a CEO of a similar sized company .

After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Few would argue that it's wise for the company to pay any more, before returns improve. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Getech Group (free visualization of insider trades).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.