A Look At GB Group's (LON:GBG) CEO Remuneration

Chris Clark became the CEO of GB Group plc (LON:GBG) 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 GB Group.

See our latest analysis for GB Group

Comparing GB Group plc's CEO Compensation With the industry

Our data indicates that GB Group plc has a market capitalization of UK£1.6b, and total annual CEO compensation was reported as UK£1.3m for the year to March 2020. Notably, that's an increase of 11% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£504k.

In comparison with other companies in the industry with market capitalizations ranging from UK£718m to UK£2.3b, the reported median CEO total compensation was UK£559k. This suggests that Chris Clark is paid more than the median for the industry. Moreover, Chris Clark also holds UK£2.0m worth of GB Group stock directly under their own name.

On an industry level, roughly 68% of total compensation represents salary and 32% is other remuneration. It's interesting to note that GB Group allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at GB Group plc's Growth Numbers

Over the past three years, GB Group plc has seen its earnings per share (EPS) grow by 12% per year. Its revenue is up 16% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 GB Group plc Been A Good Investment?

Boasting a total shareholder return of 104% over three years, GB Group plc has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

As we noted earlier, GB Group pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, GB Group has produced strong EPS growth and shareholder returns over the last three years. Considering such exceptional results for the company, we'd venture to say CEO compensation is fair. Given the strong history of shareholder returns, the shareholders are probably very happy with Chris's performance.

Whatever your view on compensation, you might want to check if insiders are buying or selling GB Group shares (free trial).

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

When trading GB Group or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.