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Jamal Rushdy became the CEO of Collagen Solutions plc (LON:COS) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Collagen Solutions
How Does Jamal Rushdy's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Collagen Solutions plc has a market cap of UK£15m, and is paying total annual CEO compensation of UK£233k. (This is based on the year to March 2018). Notably, the salary of UK£226k is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below UK£158m, and calculated the median CEO total compensation to be UK£248k.
So Jamal Rushdy is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Collagen Solutions has changed from year to year.
Is Collagen Solutions plc Growing?
On average over the last three years, Collagen Solutions plc has shrunk earnings per share by 4.1% each year (measured with a line of best fit). In the last year, its revenue is down -3.0%.
Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.
Has Collagen Solutions plc Been A Good Investment?
With a three year total loss of 31%, Collagen Solutions plc would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Jamal Rushdy is paid around what is normal the leaders of comparable size companies.
The company isn't growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don't think the CEO is underpaid! Whatever your view on compensation, you might want to check if insiders are buying or selling Collagen Solutions shares (free trial).