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This article will reflect on the compensation paid to Robert Thomas Ware who has served as CEO of The Conygar Investment Company PLC (LON:CIC) since 2006. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Comparing The Conygar Investment Company PLC's CEO Compensation With the industry
According to our data, The Conygar Investment Company PLC has a market capitalization of UK£59m, and paid its CEO total annual compensation worth UK£400k over the year to September 2020. That's mostly flat as compared to the prior year's compensation. Notably, the salary of UK£400k is the entirety of the CEO compensation.
On comparing similar-sized companies in the industry with market capitalizations below UK£146m, we found that the median total CEO compensation was UK£321k. So it looks like Conygar Investment compensates Robert Thomas Ware in line with the median for the industry. Furthermore, Robert Thomas Ware directly owns UK£5.0m worth of shares in the company, implying that they are deeply invested in the company's success.
Speaking on an industry level, nearly 51% of total compensation represents salary, while the remainder of 49% is other remuneration. On a company level, Conygar Investment prefers to reward its CEO through a salary, opting not to pay Robert Thomas Ware through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
The Conygar Investment Company PLC's Growth
The Conygar Investment Company PLC has reduced its earnings per share by 38% a year over the last three years. It saw its revenue drop 5.7% over the last year.
The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has The Conygar Investment Company PLC Been A Good Investment?
Since shareholders would have lost about 32% over three years, some The Conygar Investment Company PLC investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.
Conygar Investment rewards its CEO solely through a salary, ignoring non-salary benefits completely. As previously discussed, Robert Thomas is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, EPS growth and total shareholder return have been negative for the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for Conygar Investment (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from Conygar Investment, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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.
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