What Did Hays' (LON:HAS) CEO Take Home Last Year?

Alistair Cox has been the CEO of Hays plc (LON:HAS) since 2007, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Hays pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Hays

Comparing Hays plc's CEO Compensation With the industry

Our data indicates that Hays plc has a market capitalization of UK£2.4b, and total annual CEO compensation was reported as UK£1.4m for the year to June 2020. Notably, that's a decrease of 48% over the year before. Notably, the salary which is UK£749.0k, represents most of the total compensation being paid.

On examining similar-sized companies in the industry with market capitalizations between UK£1.5b and UK£4.7b, we discovered that the median CEO total compensation of that group was UK£3.2m. This suggests that Alistair Cox is paid below the industry median. Furthermore, Alistair Cox directly owns UK£5.6m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 79% of total compensation represents salary and 21% is other remuneration. Hays sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Hays plc's Growth Numbers

Over the last three years, Hays plc has shrunk its earnings per share by 31% per year. In the last year, its revenue is down 2.3%.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Hays plc Been A Good Investment?

Given the total shareholder loss of 23% over three years, many shareholders in Hays plc are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As we touched on above, Hays plc is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. While we are quite underwhelmed with EPS growth, the shareholder returns over the past three years have also failed to impress us. It's tough to say that Alistair is earning a very high compensation, but shareholders will likely want to see healthier investor returns before agreeing that a raise is in order.

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 Hays that you should be aware of before investing.

Switching gears from Hays, 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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