What Did Charles Stanley Group's (LON:CAY) CEO Take Home Last Year?
Paul Abberley has been the CEO of Charles Stanley Group PLC (LON:CAY) since 2014, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Charles Stanley Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
See our latest analysis for Charles Stanley Group
How Does Total Compensation For Paul Abberley Compare With Other Companies In The Industry?
According to our data, Charles Stanley Group PLC has a market capitalization of UK£130m, and paid its CEO total annual compensation worth UK£785k over the year to March 2020. That's a modest increase of 4.8% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£379k.
On comparing similar companies from the same industry with market caps ranging from UK£76m to UK£303m, we found that the median CEO total compensation was UK£529k. This suggests that Paul Abberley is paid more than the median for the industry. Furthermore, Paul Abberley directly owns UK£293k worth of shares in the company.
Component | 2020 | 2019 | Proportion (2020) |
Salary | UK£379k | UK£362k | 48% |
Other | UK£406k | UK£387k | 52% |
Total Compensation | UK£785k | UK£749k | 100% |
On an industry level, roughly 49% of total compensation represents salary and 51% is other remuneration. Although there is a difference in how total compensation is set, Charles Stanley Group more or less reflects the market in terms of setting the salary. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Charles Stanley Group PLC's Growth
Charles Stanley Group PLC's earnings per share (EPS) grew 31% per year over the last three years. Its revenue is up 11% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Charles Stanley Group PLC Been A Good Investment?
Given the total shareholder loss of 29% over three years, many shareholders in Charles Stanley Group PLC are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
As previously discussed, Paul is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But the company has impressed with its EPS growth, but shareholder returns — over the same period — have been disappointing. Although we'd stop short of calling it inappropriate, we think Paul is earning a very handsome sum.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Charles Stanley Group that investors should think about before committing capital to this stock.
Important note: Charles Stanley Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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