We Take A Look At Whether Cordel Group Plc's (LON:CRDL) CEO May Be Underpaid

Shareholders will be pleased by the impressive results for Cordel Group Plc (LON:CRDL) recently and CEO Nick Smith has played a key role. At the upcoming AGM on 17 November 2022, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

View our latest analysis for Cordel Group

Comparing Cordel Group Plc's CEO Compensation With The Industry

According to our data, Cordel Group Plc has a market capitalization of UK£12m, and paid its CEO total annual compensation worth UK£112k over the year to June 2022. That's mostly flat as compared to the prior year's compensation. Notably, the salary of UK£112k is the entirety of the CEO compensation.

On comparing similar-sized companies in the industry with market capitalizations below UK£172m, we found that the median total CEO compensation was UK£254k. Accordingly, Cordel Group pays its CEO under the industry median. Furthermore, Nick Smith directly owns UK£1.7m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	UK£112k	UK£105k	100%
Other	-	UK£6.8k	-
Total Compensation	UK£112k	UK£112k	100%

On an industry level, around 63% of total compensation represents salary and 37% is other remuneration. At the company level, Cordel Group pays Nick Smith solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Cordel Group Plc's Growth

Cordel Group Plc has seen its earnings per share (EPS) increase by 47% a year over the past three years. Its revenue is up 34% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Cordel Group Plc Been A Good Investment?

Boasting a total shareholder return of 400% over three years, Cordel Group Plc has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Cordel Group rewards its CEO solely through a salary, ignoring non-salary benefits completely. Some shareholders will probably be more lenient on CEO compensation in the upcoming AGM given the pleasing performance of the company recently. Seeing that earnings growth and share price performance seems to be on the right path, the more pressing focus for shareholders at the AGM may be how the board and management plans to turn the company into a sustainably profitable one.

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 Cordel Group you should be aware of, and 1 of them doesn't sit too well with us.

Switching gears from Cordel Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St 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. Simply Wall St has no position in any stocks mentioned.