Is Getech Group Plc's (LON:GTC) CEO Being Overpaid?
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In 2016 Jonathan Copus was appointed CEO of Getech Group Plc (LON:GTC). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Getech Group
How Does Jonathan Copus's Compensation Compare With Similar Sized Companies?
According to our data, Getech Group Plc has a market capitalization of UK£10.0m, and pays its CEO total annual compensation worth UK£377k. (This is based on the year to December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£323k. We examined a group of similar sized companies, with market capitalizations of below UK£159m. The median CEO total compensation in that group is UK£253k.
Thus we can conclude that Jonathan Copus receives more in total compensation than the median of a group of companies in the same market, and of similar size to Getech Group Plc. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Getech Group has changed from year to year.
Is Getech Group Plc Growing?
Getech Group Plc has reduced its earnings per share by an average of 57% a year, over the last three years (measured with a line of best fit). Its revenue is up 3.8% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Getech Group Plc Been A Good Investment?
With a total shareholder return of 3.9% over three years, Getech Group Plc has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
We compared total CEO remuneration at Getech Group Plc with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.
And while shareholder returns have been respectable, they have hardly been superb. So we doubt many shareholders would consider the CEO pay to be particularly modest! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Getech Group.
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.
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.
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. Thank you for reading.
