In 2017 Andy Thorburn was appointed CEO of EMIS Group plc (LON:EMIS). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
See our latest analysis for EMIS Group
How Does Andy Thorburn's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that EMIS Group plc has a market cap of UK£697m, and reported total annual CEO compensation of UK£922k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at UK£400k. We examined companies with market caps from UK£300m to UK£1.2b, and discovered that the median CEO total compensation of that group was UK£869k.
That means Andy Thorburn receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at EMIS Group has changed over time.
Is EMIS Group plc Growing?
On average over the last three years, EMIS Group plc has grown earnings per share (EPS) by 23% each year (using a line of best fit). Its revenue is up 13% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has EMIS Group plc Been A Good Investment?
EMIS Group plc has served shareholders reasonably well, with a total return of 26% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
Andy Thorburn is paid around the same as most CEOs of similar size companies.
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. As a result of these considerations, I would suggest the CEO pay is reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at EMIS Group.
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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