Jamal Rushdy became the CEO of Collagen Solutions plc (LON:COS) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Jamal Rushdy’s Compensation Compare With Similar Sized Companies?
Our data indicates that Collagen Solutions plc is worth UK£10m, and total annual CEO compensation is UK£233k. Notably, that’s an increase of 22% over the year before. We took a group of companies with market capitalizations below UK£156m, and calculated the median CEO compensation to be UK£244k.
So Jamal Rushdy is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Collagen Solutions has changed over time.
Is Collagen Solutions plc Growing?
Collagen Solutions plc has increased its earnings per share (EPS) by an average of 2.0% a year, over the last three years Its revenue is down -11% over last year.
I generally like to see a little revenue growth, but I’m happy with the EPS growth. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Collagen Solutions plc Been A Good Investment?
With a three year total loss of 68%, Collagen Solutions plc would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
Remuneration for Jamal Rushdy is close enough to the median pay for a CEO of a similar sized company .
The per share growth could be better, in our view. And we think the shareholder returns – over three years – have been underwhelming. This contrasts with the growth in CEO remuneration. So many would argue that the CEO is certainly not underpaid. So you may want to check if insiders are buying Collagen Solutions plc shares with their own money (free access).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.