David Rugg has been the CEO of Christie Group plc (LON:CTG) since 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 – 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 David Rugg’s Compensation Compare With Similar Sized Companies?
According to our data, Christie Group plc has a market capitalization of UK£28m, and pays its CEO total annual compensation worth UK£500k. That’s a fairly small increase of 5.7% on year before. We examined a group of similar sized companies, with market capitalizations of below UK£156m. The median CEO compensation in that group is UK£245k.
It would therefore appear that Christie Group plc pays David Rugg more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Christie Group has changed over time.
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 In the last year, its revenue is up 11%.
This demonstrates that the company has been improving recently. A good result. 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 13% over three years, many shareholders in Christie Group plc are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared total CEO remuneration at Christie Group plc with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. Whatever your view on compensation, you might want to check if insiders are buying or selling Christie Group plc shares (free trial).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
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 firstname.lastname@example.org.