How Much Is Cohort plc (LON:CHRT) Paying Its CEO?

Andy Thomis became the CEO of Cohort plc (LON:CHRT) in 2009, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Cohort pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Cohort

How Does Total Compensation For Andy Thomis Compare With Other Companies In The Industry?

At the time of writing, our data shows that Cohort plc has a market capitalization of UK£259m, and reported total annual CEO compensation of UK£487k for the year to April 2020. That's just a smallish increase of 6.5% on last year. Notably, the salary which is UK£260.8k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations ranging from UK£146m to UK£585m, the reported median CEO total compensation was UK£531k. This suggests that Cohort remunerates its CEO largely in line with the industry average. Furthermore, Andy Thomis directly owns UK£1.2m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 42% of total compensation represents salary and 58% is other remuneration. It's interesting to note that Cohort pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Cohort plc's Growth

Over the past three years, Cohort plc has seen its earnings per share (EPS) grow by 16% per year. Its revenue is down 12% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Cohort plc Been A Good Investment?

Boasting a total shareholder return of 74% over three years, Cohort plc has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

As we noted earlier, Cohort pays its CEO in line with similar-sized companies belonging to the same industry. Few would be critical of the leadership, since returns have been juicy and EPS are moving in the right direction. Indeed, many might consider that Andy is compensated rather modestly, given the solid company performance! In fact, shareholders might even think the CEO deserves a raise as a reward due to the fantastic returns generated.

So you may want to check if insiders are buying Cohort shares with their own money (free access).

Switching gears from Cohort, 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.

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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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