Does Cambria Automobiles plc's (LON:CAMB) CEO Salary Compare Well With Others?

Mark Lavery became the CEO of Cambria Automobiles plc (LON:CAMB) in 2006. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Cambria Automobiles

How Does Mark Lavery's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Cambria Automobiles plc has a market cap of UK£52m, and is paying total annual CEO compensation of UK£850k. That's a modest increase of 5.6% on the prior year year. We looked at a group of companies with market capitalizations under UK£154m, and the median CEO compensation was UK£243k.

It would therefore appear that Cambria Automobiles plc pays Mark Lavery more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at Cambria Automobiles, below.

Is Cambria Automobiles plc Growing?

Over the last three years Cambria Automobiles plc has grown its earnings per share (EPS) by an average of 16% per year. It saw its revenue drop -2.3% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. So this freevisualization of the analyst consensus on future earnings could help you make the right decision about whether to buy, sell, or hold.

Has Cambria Automobiles plc Been A Good Investment?

Since shareholders would have lost about 22% over three years, some Cambria Automobiles plc shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We compared total CEO remuneration at Cambria Automobiles plc with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. Even if a company pays the CEO quite generously, that doesn't mean it's a bad investment. Nonetheless, it could be useful to double-check if insiders have sold shares recently.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this freelist of interesting companies.

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 editorial-team@simplywallst.com.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.