How Much Did Hansard Global Plc's (LON:HSD) CEO Pocket Last Year?
In 2013 Gordon Marr was appointed CEO of Hansard Global Plc (LON:HSD). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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.
See our latest analysis for Hansard Global
How Does Gordon Marr's Compensation Compare With Similar Sized Companies?
According to our data, Hansard Global Plc has a market capitalization of UK£57m, and paid its CEO total annual compensation worth UK£473k over the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at UK£322k. We examined a group of similar sized companies, with market capitalizations of below UK£153m. The median CEO total compensation in that group is UK£252k.
As you can see, Gordon Marr is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Hansard Global Plc is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Hansard Global has changed from year to year.
Is Hansard Global Plc Growing?
On average over the last three years, Hansard Global Plc has shrunk earnings per share by 15% each year (measured with a line of best fit). In the last year, its revenue is up 31%.
The reduction in earnings per share, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Hansard Global Plc Been A Good Investment?
Since shareholders would have lost about 49% over three years, some Hansard Global 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 the total CEO remuneration paid by Hansard Global Plc, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Although we'd stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. Whatever your view on compensation, you might want to check if insiders are buying or selling Hansard Global shares (free trial).
Important note: Hansard Global 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.
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.
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