A Look At Hansard Global's (LON:HSD) CEO Remuneration

This article will reflect on the compensation paid to Gordon Marr who has served as CEO of Hansard Global Plc (LON:HSD) since 2013. This analysis will also assess whether Hansard Global pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Hansard Global

Comparing Hansard Global Plc's CEO Compensation With the industry

Our data indicates that Hansard Global Plc has a market capitalization of UK£62m, and total annual CEO compensation was reported as UK£408k for the year to June 2020. That's a notable decrease of 14% on last year. We note that the salary portion, which stands at UK£324.1k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below UK£146m, reported a median total CEO compensation of UK£316k. So it looks like Hansard Global compensates Gordon Marr in line with the median for the industry. Furthermore, Gordon Marr directly owns UK£307k worth of shares in the company.

Talking in terms of the industry, salary represented approximately 37% of total compensation out of all the companies we analyzed, while other remuneration made up 63% of the pie. It's interesting to note that Hansard Global pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Hansard Global Plc's Growth

Hansard Global Plc has reduced its earnings per share by 16% a year over the last three years. Its revenue is down 47% over the previous year.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Hansard Global Plc Been A Good Investment?

Given the total shareholder loss of 26% over three years, many shareholders in Hansard Global Plc are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As we noted earlier, Hansard Global pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 4 warning signs for Hansard Global that investors should look into moving forward.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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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