A Look At RTC Group's (LON:RTC) CEO Remuneration

Andy Pendlebury became the CEO of RTC Group plc (LON:RTC) in 2007, 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 RTC Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for RTC Group

Comparing RTC Group plc's CEO Compensation With the industry

According to our data, RTC Group plc has a market capitalization of UK£6.2m, and paid its CEO total annual compensation worth UK£593k over the year to December 2019. We note that's an increase of 23% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£260k.

For comparison, other companies in the industry with market capitalizations below UK£150m, reported a median total CEO compensation of UK£292k. Hence, we can conclude that Andy Pendlebury is remunerated higher than the industry median. Moreover, Andy Pendlebury also holds UK£300k worth of RTC Group stock directly under their own name.

On an industry level, around 77% of total compensation represents salary and 23% is other remuneration. RTC Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at RTC Group plc's Growth Numbers

RTC Group plc has seen its earnings per share (EPS) increase by 1.8% a year over the past three years. Its revenue is down 4.2% over the previous year.

We generally like to see a little revenue growth, but the modest improvement in EPS is good. It's hard to reach a conclusion about business performance right now. This may be one to watch. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has RTC Group plc Been A Good Investment?

With a three year total loss of 12% for the shareholders, RTC Group plc would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As we touched on above, RTC Group 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. The growth in the business has been uninspiring, but the shareholder returns for RTC Group have arguably been worse, over the last three years. This doesn't look good when you see that Andy is earning more than the industry median. Taking all this into account, it could be hard to get shareholder support for giving Andy a raise.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for RTC Group that you should be aware of before investing.

Switching gears from RTC Group, 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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