Dean Godwin became the CEO of Sanne Group plc (LON:SNN) in 2012. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Dean Godwin’s Compensation Compare With Similar Sized Companies?
Our data indicates that Sanne Group plc is worth UK£824m, and total annual CEO compensation is UK£366k. (This is based on the year to 2017). While we always look at total compensation first, we note that the salary component is less, at UK£258k. We examined companies with market caps from UK£317m to UK£1.3b, and discovered that the median CEO compensation of that group was UK£1.0m.
Most shareholders would consider it a positive that Dean Godwin takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Sanne Group has changed from year to year.
Is Sanne Group plc Growing?
On average over the last three years, Sanne Group plc has grown earnings per share (EPS) by 51% each year. Its revenue is up 33% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Sanne Group plc Been A Good Investment?
I think that the total shareholder return of 61%, over three years, would leave most Sanne Group plc shareholders smiling. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
It appears that Sanne Group plc remunerates its CEO below most similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Dean Godwin deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. But it is even better if company insiders are also buying shares with their own money. So you may want to check if insiders are buying Sanne Group shares with their own money (free access).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
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 firstname.lastname@example.org.