Is GLI Finance Limited's (LON:GLIF) CEO Salary Justified?
In 2016 Andy Whelan was appointed CEO of GLI Finance Limited (LON:GLIF). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for GLI Finance
How Does Andy Whelan's Compensation Compare With Similar Sized Companies?
According to our data, GLI Finance Limited has a market capitalization of UK£7.1m, and paid its CEO total annual compensation worth UK£655k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at UK£247k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations under UK£155m, and the median CEO total compensation was UK£249k.
Thus we can conclude that Andy Whelan receives more in total compensation than the median of a group of companies in the same market, and of similar size to GLI Finance Limited. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at GLI Finance has changed over time.
Is GLI Finance Limited Growing?
Over the last three years GLI Finance Limited has grown its earnings per share (EPS) by an average of 4.5% per year (using a line of best fit). In the last year, its revenue is down 19%.
I would prefer it if there was revenue growth, but the improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has GLI Finance Limited Been A Good Investment?
With a three year total loss of 89%, GLI Finance Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We compared total CEO remuneration at GLI Finance Limited 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.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Although we'd stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. So you may want to check if insiders are buying GLI Finance shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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.
