Is Curtis Banks Group plc's (LON:CBP) CEO Pay Justified?

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Rupert Curtis is the CEO of Curtis Banks Group plc (LON:CBP). 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 method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Curtis Banks Group

How Does Rupert Curtis's Compensation Compare With Similar Sized Companies?

Our data indicates that Curtis Banks Group plc is worth UK£166m, and total annual CEO compensation is UK£476k. (This figure is for the year to December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£279k. We looked at a group of companies with market capitalizations from UK£79m to UK£316m, and the median CEO total compensation was UK£507k.

So Rupert Curtis receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at Curtis Banks Group has changed from year to year.

AIM:CBP CEO Compensation, May 28th 2019
AIM:CBP CEO Compensation, May 28th 2019

Is Curtis Banks Group plc Growing?

On average over the last three years, Curtis Banks Group plc has grown earnings per share (EPS) by 26% each year (using a line of best fit). It saw its revenue drop -77% over the last year.

This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. Shareholders might be interested in this free visualization of analyst forecasts.

Has Curtis Banks Group plc Been A Good Investment?

With a three year total loss of 8.4%, Curtis Banks Group plc would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Remuneration for Rupert Curtis is close enough to the median pay for a CEO of a similar sized company .

We like that the company is growing EPS, but it's disappointing to see negative shareholder returns over three years. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. So you may want to check if insiders are buying Curtis Banks Group shares with their own money (free access).