Is Charles Stanley Group PLC's (LON:CAY) CEO Paid At A Competitive Rate?
Paul Abberley has been the CEO of Charles Stanley Group PLC (LON:CAY) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Charles Stanley Group
How Does Paul Abberley's Compensation Compare With Similar Sized Companies?
According to our data, Charles Stanley Group PLC has a market capitalization of UK£142m, and pays its CEO total annual compensation worth UK£749k. (This number is for the twelve months until March 2019). That's a notable increase of 17% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£362k. We examined companies with market caps from UK£81m to UK£324m, and discovered that the median CEO total compensation of that group was UK£504k.
As you can see, Paul Abberley is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Charles Stanley Group PLC is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Charles Stanley Group, below.
Is Charles Stanley Group PLC Growing?
On average over the last three years, Charles Stanley Group PLC has grown earnings per share (EPS) by 51% each year (using a line of best fit). Its revenue is up 3.1% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.
Has Charles Stanley Group PLC Been A Good Investment?
Since shareholders would have lost about 6.6% over three years, some Charles Stanley Group PLC shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We compared total CEO remuneration at Charles Stanley Group PLC with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. This doesn't look great when you consider CEO remuneration is up on last year. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. So you may want to check if insiders are buying Charles Stanley Group shares with their own money (free access).
Important note: Charles Stanley 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.
