Simon Innes became the CEO of CVS Group plc (LON:CVSG) in 2004. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Simon Innes's Compensation Compare With Similar Sized Companies?
Our data indicates that CVS Group plc is worth UK£638m, and total annual CEO compensation was reported as UK£487k for the year to June 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£406k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£320m to UK£1.3b. The median total CEO compensation was UK£922k.
A first glance this seems like a real positive for shareholders, since Simon Innes is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at CVS Group has changed over time.
Is CVS Group plc Growing?
Over the last three years CVS Group plc has grown its earnings per share (EPS) by an average of 3.9% per year (using a line of best fit). It achieved revenue growth of 21% over the last year.
This revenue growth could really point to a brighter future. And the modest growth in earnings per share isn't bad, either. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has CVS Group plc Been A Good Investment?
With a three year total loss of 2.6%, CVS Group plc would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
It looks like CVS Group plc pays its CEO less than similar sized companies.
Simon Innes receives relatively low remuneration compared to similar sized companies. But the company isn't exactly firing on all cylinders, and returns over three years are not good. I am not concerned by the CEO compensation, but it would be good to see improved performance before pay increases. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at CVS Group.
Important note: CVS 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.
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