A Quick Analysis On Conygar Investment's (LON:CIC) CEO Compensation

Robert Thomas Ware has been the CEO of The Conygar Investment Company PLC (LON:CIC) since 2006, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Conygar Investment.

See our latest analysis for Conygar Investment

Comparing The Conygar Investment Company PLC's CEO Compensation With the industry

According to our data, The Conygar Investment Company PLC has a market capitalization of UK£59m, and paid its CEO total annual compensation worth UK£400k over the year to September 2020. That is, the compensation was roughly the same as last year. It is worth noting that the CEO compensation consists entirely of the salary, worth UK£400k.

For comparison, other companies in the industry with market capitalizations below UK£146m, reported a median total CEO compensation of UK£321k. So it looks like Conygar Investment compensates Robert Thomas Ware in line with the median for the industry. What's more, Robert Thomas Ware holds UK£5.0m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 51% of total compensation represents salary and 49% is other remuneration. Speaking on a company level, Conygar Investment prefers to tread along a traditional path, disbursing all compensation through a salary. 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.

The Conygar Investment Company PLC's Growth

Over the last three years, The Conygar Investment Company PLC has shrunk its earnings per share by 38% per year. In the last year, its revenue is down 5.7%.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has The Conygar Investment Company PLC Been A Good Investment?

Since shareholders would have lost about 30% over three years, some The Conygar Investment Company PLC investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Conygar Investment rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we noted earlier, Conygar Investment 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.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 1 which is a bit concerning) in Conygar Investment we think you should know about.

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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