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How Does S&U's (LON:SUS) CEO Pay Compare With Company Performance?

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Simply Wall St
·3 min read
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Anthony Michael Coombs became the CEO of S&U plc (LON:SUS) in 1999, 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 evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for S&U

How Does Total Compensation For Anthony Michael Coombs Compare With Other Companies In The Industry?

Our data indicates that S&U plc has a market capitalization of UK£216m, and total annual CEO compensation was reported as UK£427k for the year to January 2020. That's a notable increase of 10% on last year. In particular, the salary of UK£355.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between UK£75m and UK£300m had a median total CEO compensation of UK£427k. So it looks like S&U compensates Anthony Michael Coombs in line with the median for the industry. Moreover, Anthony Michael Coombs also holds UK£24m worth of S&U stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component

2020

2018

Proportion (2020)

Salary

UK£355k

UK£340k

83%

Other

UK£72k

UK£47k

17%

Total Compensation

UK£427k

UK£387k

100%

On an industry level, around 83% of total compensation represents salary and 17% is other remuneration. Our data reveals that S&U allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
ceo-compensation

S&U plc's Growth

Over the last three years, S&U plc has shrunk its earnings per share by 4.2% per year. It achieved revenue growth of 7.7% over the last year.

Overall this is not a very positive result for shareholders. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has S&U plc Been A Good Investment?

Given the total shareholder loss of 13% over three years, many shareholders in S&U plc are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As we touched on above, S&U plc is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for S&U that investors should think about before committing capital to this stock.

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.