The CEO of Cerillion PLC (LON:CER) is Louis Hall, and this article examines 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 Cerillion.
Comparing Cerillion PLC's CEO Compensation With the industry
At the time of writing, our data shows that Cerillion PLC has a market capitalization of UK£78m, and reported total annual CEO compensation of UK£533k for the year to September 2019. Notably, that's an increase of 14% over the year before. We note that the salary portion, which stands at UK£287.6k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations under UK£155m, the reported median total CEO compensation was UK£239k. Accordingly, our analysis reveals that Cerillion PLC pays Louis Hall north of the industry median. Moreover, Louis Hall also holds UK£24m worth of Cerillion stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Speaking on an industry level, nearly 67% of total compensation represents salary, while the remainder of 33% is other remuneration. Cerillion pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Cerillion PLC's Growth
Cerillion PLC has seen its earnings per share (EPS) increase by 43% a year over the past three years. In the last year, its revenue is up 37%.
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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Cerillion PLC Been A Good Investment?
Most shareholders would probably be pleased with Cerillion PLC for providing a total return of 126% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
As previously discussed, Louis is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But earnings growth and shareholder returns have been top-notch for the past three years. As a result of the excellent all-round performance of the company, we believe CEO compensation is fair. And given most shareholders are probably very happy with recent returns, they might even think that Louis deserves a raise!
If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Cerillion.
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.
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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