Klaas van der Leest became the CEO of Intercede Group plc (LON:IGP) in 2018, 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 assess whether Intercede Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
See our latest analysis for Intercede Group
Comparing Intercede Group plc's CEO Compensation With the industry
According to our data, Intercede Group plc has a market capitalization of UK£42m, and paid its CEO total annual compensation worth UK£331k over the year to March 2020. We note that's a decrease of 19% compared to last year. Notably, the salary which is UK£200.0k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under UK£148m, the reported median total CEO compensation was UK£252k. Hence, we can conclude that Klaas van der Leest is remunerated higher than the industry median. Moreover, Klaas van der Leest also holds UK£52k worth of Intercede Group stock directly under their own name.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | UK£200k | UK£194k | 60% |
| Other | UK£131k | UK£216k | 40% |
| Total Compensation | UK£331k | UK£410k | 100% |
On an industry level, around 68% of total compensation represents salary and 32% is other remuneration. Intercede Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Intercede Group plc's Growth
Intercede Group plc has seen its earnings per share (EPS) increase by 116% a year over the past three years. In the last year, its revenue is up 4.4%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Intercede Group plc Been A Good Investment?
We think that the total shareholder return of 190%, over three years, would leave most Intercede Group plc shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
As previously discussed, Klaas is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Importantly though, EPS growth and shareholder returns are very impressive over the last three years. As a result of the excellent all-round performance of the company, we believe CEO compensation is fair. The pleasing shareholder returns are the cherry on top. We wouldn't be wrong in saying that shareholders feel that Klaas's performance creates value for the company.
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 2 warning signs for Intercede Group you should be aware of, and 1 of them is potentially serious.
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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About AIM:IGP
Intercede Group
A cybersecurity company, develops and supplies identity and credential management software for digital trust in the United Kingdom, rest of Europe, the United States, and internationally.
Outstanding track record with flawless balance sheet.
