Yahoo Finance Should You Worry About Mulberry Group plc's (LON:MUL) CEO Salary Level?
Thierry Andretta has been the CEO of Mulberry Group plc (LON:MUL) since 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Mulberry Group
How Does Thierry Andretta's Compensation Compare With Similar Sized Companies?
According to our data, Mulberry Group plc has a market capitalization of UK£158m, and paid its CEO total annual compensation worth UK£983k over the year to March 2019. While we always look at total compensation first, we note that the salary component is less, at UK£659k. When we examined a selection of companies with market caps ranging from UK£78m to UK£311m, we found the median CEO total compensation was UK£520k.
As you can see, Thierry Andretta is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Mulberry 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 Mulberry Group, below.
Is Mulberry Group plc Growing?
Over the last three years Mulberry Group plc has shrunk its earnings per share by an average of 23% per year (measured with a line of best fit). It saw its revenue drop 2.0% over the last year.
Sadly for shareholders, earnings per share are actually down, 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. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Mulberry Group plc Been A Good Investment?
With a three year total loss of 75%, Mulberry Group plc would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared total CEO remuneration at Mulberry Group plc with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Neither earnings per share nor revenue have been growing sufficiently to impress us, over the last three years. Just as bad, share price gains for investors have failed to materialize, over the same period. Some might well form the view that the CEO is paid too generously! Shareholders may want to check for free if Mulberry Group insiders are buying or selling shares.
Important note: Mulberry Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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. Thank you for reading.
