In This Article:
David Green became the CEO of Colefax Group PLC (LON:CFX) in 1986. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Colefax Group
How Does David Green's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Colefax Group PLC has a market cap of UK£37m, and reported total annual CEO compensation of UK£715k for the year to April 2018. We think total compensation is more important but we note that the CEO salary is lower, at UK£655k. We took a group of companies with market capitalizations below UK£160m, and calculated the median CEO total compensation to be UK£255k.
As you can see, David Green is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Colefax Group PLC is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Colefax Group has changed from year to year.
Is Colefax Group PLC Growing?
On average over the last three years, Colefax Group PLC has grown earnings per share (EPS) by 23% each year (using a line of best fit). In the last year, its revenue changed by just 0.4%.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.
Has Colefax Group PLC Been A Good Investment?
Since shareholders would have lost about 8.2% over three years, some Colefax Group PLC shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared total CEO remuneration at Colefax Group PLC with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Whatever your view on compensation, you might want to check if insiders are buying or selling Colefax Group shares (free trial).