Charlie Holland became the CEO of Gusbourne PLC (LON:GUS) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Charlie Holland’s Compensation Compare With Similar Sized Companies?
According to our data, Gusbourne PLC has a market capitalization of UK£33m, and paid its CEO total annual compensation worth UK£83k over the year to December 2018. Notably, the salary of UK£79k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under UK£155m, and the median CEO total compensation was UK£248k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion. You might want to check this free visual report on analyst forecasts for future earnings.
The graphic below shows how CEO compensation at Gusbourne has changed from year to year.
Is Gusbourne PLC Growing?
On average over the last three years, Gusbourne PLC has grown earnings per share (EPS) by 13% each year (using a line of best fit). It achieved revenue growth of 48% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
Has Gusbourne PLC Been A Good Investment?
Most shareholders would probably be pleased with Gusbourne PLC for providing a total return of 55% over three years. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
It looks like Gusbourne PLC pays its CEO less than similar sized companies.
Considering the underlying business is growing earnings, this would suggest the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Charlie Holland deserves a raise! Most shareholders like to see a modestly paid CEO combined with strong performance by the company. It would be even more positive if company insiders are buying shares. So you may want to check if insiders are buying Gusbourne shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.