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Is Hays plc’s (LON:HAS) CEO Being Overpaid?

Alistair Cox has been the CEO of Hays plc (LON:HAS) since 2007. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Hays

How Does Alistair Cox’s Compensation Compare With Similar Sized Companies?

According to our data, Hays plc has a market capitalization of UK£2.3b, and pays its CEO total annual compensation worth UK£3m. That’s actually a decrease on the year before. We examined companies with market caps from UK£1.5b to UK£4.9b, and discovered that the median CEO compensation of that group was UK£2m.

It would therefore appear that Hays plc pays Alistair Cox more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration 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 a visual representation of the CEO compensation at Hays, below.

LSE:HAS CEO Compensation November 13th 18

Is Hays plc Growing?

Hays plc has increased its earnings per share (EPS) by an average of 14% a year, over the last three years It achieved revenue growth of 13% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Hays plc Been A Good Investment?

With a total shareholder return of 26% over three years, Hays plc shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary…

We compared total CEO remuneration at Hays plc with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. We also think investors are doing ok, over the same time period. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we’d recommend further research on management. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Hays plc.

Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.