How Much is Bonhill Group's (LON:BONH) CEO Getting Paid?

Simon Stilwell became the CEO of Bonhill Group Plc (LON:BONH) in 2017, 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 look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Bonhill Group.

View our latest analysis for Bonhill Group

How Does Total Compensation For Simon Stilwell Compare With Other Companies In The Industry?

Our data indicates that Bonhill Group Plc has a market capitalization of UK£6.2m, and total annual CEO compensation was reported as UK£204k for the year to December 2019. That's a notable increase of 24% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth UK£204k.

For comparison, other companies in the industry with market capitalizations below UK£150m, reported a median total CEO compensation of UK£220k. From this we gather that Simon Stilwell is paid around the median for CEOs in the industry. Moreover, Simon Stilwell also holds UK£179k worth of Bonhill Group stock directly under their own name.

Speaking on an industry level, nearly 38% of total compensation represents salary, while the remainder of 62% is other remuneration. On a company level, Bonhill Group prefers to reward its CEO through a salary, opting not to pay Simon Stilwell through non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Bonhill Group Plc's Growth Numbers

Over the past three years, Bonhill Group Plc has seen its earnings per share (EPS) grow by 26% per year. It achieved revenue growth of 20% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Bonhill Group Plc Been A Good Investment?

With a three year total loss of 94% for the shareholders, Bonhill 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...

Bonhill Group pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we touched on above, Bonhill Group Plc is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. At the same time, the company has logged negative shareholder returns over the last three years. But on the bright side, EPS growth is positive over the same period. Overall, we wouldn't say Simon is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 4 warning signs for Bonhill Group you should be aware of, and 2 of them are a bit unpleasant.

Important note: Bonhill Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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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