How Much Is Van Elle Holdings plc (LON:VANL) CEO Getting Paid?

This article will reflect on the compensation paid to Mark Cutler who has served as CEO of Van Elle Holdings plc (LON:VANL) since 2018. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Van Elle Holdings.

See our latest analysis for Van Elle Holdings

How Does Total Compensation For Mark Cutler Compare With Other Companies In The Industry?

According to our data, Van Elle Holdings plc has a market capitalization of UK£37m, and paid its CEO total annual compensation worth UK£465k over the year to April 2020. Notably, that's an increase of 48% over the year before. Notably, the salary which is UK£280.0k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under UK£144m, the reported median total CEO compensation was UK£353k. Hence, we can conclude that Mark Cutler is remunerated higher than the industry median. Moreover, Mark Cutler also holds UK£94k worth of Van Elle Holdings stock directly under their own name.

On an industry level, around 63% of total compensation represents salary and 37% is other remuneration. Our data reveals that Van Elle Holdings allocates salary more or less in line with the wider market. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Van Elle Holdings plc's Growth

Over the last three years, Van Elle Holdings plc has shrunk its earnings per share by 99% per year. In the last year, its revenue is down 21%.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Van Elle Holdings plc Been A Good Investment?

Given the total shareholder loss of 54% over three years, many shareholders in Van Elle Holdings plc are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we touched on above, Van Elle Holdings plc is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. This doesn't look good against shareholder returns, which have been negative for the past three years. To make matters worse, EPS growth has also been negative during this period. Overall, with such poor performance, shareholder's would probably have questions if the company decided to give the CEO a raise.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for Van Elle Holdings that investors should think about before committing capital to this stock.

Important note: Van Elle Holdings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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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