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How Should Investors Feel About C&C Group plc’s (ISE:GCC) CEO Pay?

Jason Fuller

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Stephen Glancey became the CEO of C&C Group plc (ISE:GCC) in 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for C&C Group

How Does Stephen Glancey’s Compensation Compare With Similar Sized Companies?

According to our data, C&C Group plc has a market capitalization of €940m, and pays its CEO total annual compensation worth €994k. (This is based on the year to 2018). While we always look at total compensation first, we note that the salary component is less, at €677k. We looked at a group of companies with market capitalizations from €354m to €1.4b, and the median CEO compensation was €747k.

It would therefore appear that C&C Group plc pays Stephen Glancey 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. We can better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at C&C Group has changed from year to year.

ISE:GCC CEO Compensation, February 19th 2019

Is C&C Group plc Growing?

On average over the last three years, C&C Group plc has grown earnings per share (EPS) by 42% each year (using a line of best fit). It achieved revenue growth of 88% over the last year.

This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. You might want to check this free visual report on analyst forecasts for future earnings.

Has C&C Group plc Been A Good Investment?

Given the total loss of 1.1% over three years, many shareholders in C&C Group plc are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

We compared total CEO remuneration at C&C Group plc with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. Whatever your view on compensation, you might want to check if insiders are buying or selling C&C Group shares (free trial).

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

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. On rare occasion, data errors may occur. Thank you for reading.