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How Does EMIS Group's (LON:EMIS) CEO Salary Compare to Peers?

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Simply Wall St
·3 min read
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Andy Thorburn became the CEO of EMIS Group plc (LON:EMIS) in 2017, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for EMIS Group.

Check out our latest analysis for EMIS Group

How Does Total Compensation For Andy Thorburn Compare With Other Companies In The Industry?

According to our data, EMIS Group plc has a market capitalization of UK£626m, and paid its CEO total annual compensation worth UK£817k over the year to December 2019. That's a notable decrease of 11% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£400k.

In comparison with other companies in the industry with market capitalizations ranging from UK£301m to UK£1.2b, the reported median CEO total compensation was UK£774k. This suggests that EMIS Group remunerates its CEO largely in line with the industry average. What's more, Andy Thorburn holds UK£462k worth of shares in the company in their own name.

Component

2019

2018

Proportion (2019)

Salary

UK£400k

UK£400k

49%

Other

UK£417k

UK£522k

51%

Total Compensation

UK£817k

UK£922k

100%

On an industry level, roughly 85% of total compensation represents salary and 15% is other remuneration. EMIS Group pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
ceo-compensation

EMIS Group plc's Growth

Over the past three years, EMIS Group plc has seen its earnings per share (EPS) grow by 14% per year. It achieved revenue growth of 1.8% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 EMIS Group plc Been A Good Investment?

EMIS Group plc has served shareholders reasonably well, with a total return of 16% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

As previously discussed, Andy is compensated close to the median for companies of its size, and which belong to the same industry. But EPS growth over the last three years has been impressive, although the same cannot be said for shareholder returns. Considering overall performance, we'd say the compensation is fair, although stockholders will want to see higher returns moving forward.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling EMIS Group (free visualization of insider trades).

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.