Does Comptoir Group plc's (LON:COM) CEO Pay Reflect Performance?
In 2011 Chaker Hanna was appointed CEO of Comptoir Group plc (LON:COM). First, this article will compare CEO compensation with compensation at similar sized companies. 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 Comptoir Group
How Does Chaker Hanna's Compensation Compare With Similar Sized Companies?
According to our data, Comptoir Group plc has a market capitalization of UK£9.5m, and paid its CEO total annual compensation worth UK£189k over the year to December 2018. Notably, the salary of UK£188k is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below UK£157m, and calculated the median CEO total compensation to be UK£257k.
So Chaker Hanna 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 Comptoir Group, below.
Is Comptoir Group plc Growing?
Over the last three years Comptoir Group plc has shrunk its earnings per share by an average of 13% per year (measured with a line of best fit). It achieved revenue growth of 6.8% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. 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 Comptoir Group plc Been A Good Investment?
Since shareholders would have lost about 87% over three years, some Comptoir 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 Chaker Hanna is close enough to the median pay for a CEO of a similar sized company .
Returns have been disappointing and the company is not growing its earnings per share. 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 Comptoir Group (free visualization of insider trades).
If you want to buy a stock that is better than Comptoir 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.
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.
