Mark Lavery has been the CEO of Cambria Automobiles plc (LON:CAMB) since 2006. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Cambria Automobiles
How Does Mark Lavery's Compensation Compare With Similar Sized Companies?
According to our data, Cambria Automobiles plc has a market capitalization of UK£70m, and paid its CEO total annual compensation worth UK£800k over the year to August 2019. That's a notable increase of 11% on last year. While we always look at total compensation first, we note that the salary component is less, at UK£400k. We looked at a group of companies with market capitalizations under UK£155m, and the median CEO total compensation was UK£251k.
It would therefore appear that Cambria Automobiles plc pays Mark Lavery more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Cambria Automobiles has changed over time.
Is Cambria Automobiles plc Growing?
Cambria Automobiles plc has reduced its earnings per share by an average of 1.2% a year, over the last three years (measured with a line of best fit). Its revenue is up 4.4% over last year.
Unfortunately there is a complete lack of earnings per share improvement, over three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has Cambria Automobiles plc Been A Good Investment?
Cambria Automobiles plc has generated a total shareholder return of 12% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
We compared total CEO remuneration at Cambria Automobiles plc with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.