Jamal Rushdy has been the CEO of Collagen Solutions plc (LON:COS) since 2016. 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 – 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.
How Does Jamal Rushdy’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Collagen Solutions plc has a market cap of UK£11m, and is paying total annual CEO compensation of UK£233k. (This number is for the twelve months until 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth UK£226k. We looked at a group of companies with market capitalizations under UK£157m, and the median CEO compensation was UK£244k.
So Jamal Rushdy receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Collagen Solutions, below.
Is Collagen Solutions plc Growing?
Over the last three years Collagen Solutions plc has grown its earnings per share (EPS) by an average of 2.0% per year. Its revenue is down -11% over last year.
I would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see EPS growth. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Collagen Solutions plc Been A Good Investment?
With a three year total loss of 64%, Collagen Solutions plc would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
Jamal Rushdy is paid around what is normal the leaders of comparable size companies.
The company cannot boast particularly strong per share growth. And shareholder returns have been disappointing over the last three years. So suffice it to say we don’t think the compensation is modest! So you may want to check if insiders are buying Collagen Solutions shares with their own money (free access).
Or you might prefer examine intently this intuitive graph showing past earnings 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 email@example.com.