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Is Camellia Plc (LON:CAM) Overpaying Its CEO?

Simply Wall St

In 2015 Tom Franks was appointed CEO of Camellia Plc (LON:CAM). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Camellia

How Does Tom Franks's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Camellia Plc has a market cap of UK£243m, and reported total annual CEO compensation of UK£616k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£550k. We looked at a group of companies with market capitalizations from UK£152m to UK£609m, and the median CEO total compensation was UK£671k.

That means Tom Franks receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Camellia, below.

AIM:CAM CEO Compensation, January 1st 2020

Is Camellia Plc Growing?

Camellia Plc has increased its earnings per share (EPS) by an average of 46% a year, over the last three years (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.

This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. You might want to check this free visual report on analyst forecasts for future earnings.

Has Camellia Plc Been A Good Investment?

With a three year total loss of 14%, Camellia Plc would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Remuneration for Tom Franks is close enough to the median pay for a CEO of a similar sized company .

We like that the company is growing EPS, but we find the returns over the last three years to be lacking. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. So you may want to check if insiders are buying Camellia shares with their own money (free access).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity 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.

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.