In 2017 Chris Clark was appointed CEO of GB Group plc (LON:GBG). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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.
See our latest analysis for GB Group
How Does Chris Clark's Compensation Compare With Similar Sized Companies?
Our data indicates that GB Group plc is worth UK£1.0b, and total annual CEO compensation was reported as UK£1.2m for the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£491k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£788m to UK£2.5b. The median total CEO compensation was UK£1.5m.
That means Chris Clark receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at GB Group has changed over time.
Is GB Group plc Growing?
GB Group plc saw earnings per share stay pretty flat over the last three years, albeit with a slight decrease, according to the line of best fit. Its revenue is up 20% over last year.
The lack of earnings per share growth in the last three years is unimpressive. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has GB Group plc Been A Good Investment?
I think that the total shareholder return of 68%, over three years, would leave most GB Group plc shareholders smiling. 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.
In Summary...
Chris Clark is paid around what is normal the leaders of comparable size companies.
We feel that earnings per share have been a bit disappointing, but it's nice to see positive shareholder returns over the last three years. So we doubt many are complaining about the fairly normal CEO pay. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling GB Group (free visualization of insider trades).
If you want to buy a stock that is better than GB Group, this free list of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
About AIM:GBG
GB Group
Provides identity data intelligence products and services in the United Kingdom, the United States, Australia, and internationally.
Reasonable growth potential with mediocre balance sheet.
