David Rugg became the CEO of Christie Group plc (LON:CTG) in 2000. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does David Rugg’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Christie Group plc has a market cap of UK£25m, and is paying total annual CEO compensation of UK£500k. (This number is for the twelve months until December 2017). We think total compensation is more important but we note that the CEO salary is lower, at UK£400k. We looked at a group of companies with market capitalizations under UK£153m, and the median CEO compensation was UK£237k.
Thus we can conclude that David Rugg receives more in total compensation than the median of a group of companies in the same market, and of similar size to Christie Group plc. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Christie Group, below.
Is Christie Group plc Growing?
Christie Group plc has increased its earnings per share (EPS) by an average of 12% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 11%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Christie Group plc Been A Good Investment?
Given the total loss of 16% over three years, many shareholders in Christie 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.
We compared the total CEO remuneration paid by Christie Group plc, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. On the other hand returns to investors over the same period have probably disappointed many. Considering the per share profit growth, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation. So you may want to check if insiders are buying Christie Group shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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