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The CEO of CloudBuy plc (LON:CBUY) is Helen Duncan. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for CloudBuy
How Does Helen Duncan's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that CloudBuy plc has a market cap of UK£3.1m, and is paying total annual CEO compensation of UK£121k. (This number is for the twelve months until December 2018). That's a modest increase of 0.3% on the prior year year. It is worth noting that the CEO compensation consists almost entirely of the salary, worth UK£120k. We took a group of companies with market capitalizations below UK£158m, and calculated the median CEO total compensation to be UK£248k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at CloudBuy, below.
Is CloudBuy plc Growing?
Over the last three years CloudBuy plc has grown its earnings per share (EPS) by an average of 39% per year (using a line of best fit). In the last year, its revenue is down -26%.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has CloudBuy plc Been A Good Investment?
With a three year total loss of 68%, CloudBuy plc would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
CloudBuy plc is currently paying its CEO below what is normal for companies of its size. Many would consider this to indicate that the pay is modest since the business is growing. Despite some positives, it is likely that shareholders wanted better returns, given the performance over the last three years. So while we would not say that Helen Duncan is generously paid, it would be good to see an improvement in business performance before too an increase in pay.