Why CentralNic Group Plc's (LON:CNIC) CEO Pay Matters To You

Ben Crawford became the CEO of CentralNic Group Plc (LON:CNIC) in 2009. 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.

Check out our latest analysis for CentralNic Group

How Does Ben Crawford's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that CentralNic Group Plc has a market cap of UK£173m, and reported total annual CEO compensation of UK£538k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at UK£230k. When we examined a selection of companies with market caps ranging from UK£80m to UK£322m, we found the median CEO total compensation was UK£585k.

Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where CentralNic Group stands. Talking in terms of the sector, salary represented approximately 64% of total compensation out of all the companies we analysed, while other remuneration made up 36% of the pie. CentralNic Group sets aside a smaller share of compensation for salary, in comparison to the overall industry.

That means Ben Crawford receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. The graphic below shows how CEO compensation at CentralNic Group has changed from year to year.

AIM:CNIC CEO Compensation April 29th 2020
AIM:CNIC CEO Compensation April 29th 2020

Is CentralNic Group Plc Growing?

Over the last three years CentralNic Group Plc has shrunk its earnings per share by an average of 110% per year (measured with a line of best fit). Its revenue is up 101% over last year.

The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. You might want to check this free visual report on analyst forecasts for future earnings.

Has CentralNic Group Plc Been A Good Investment?

Most shareholders would probably be pleased with CentralNic Group Plc for providing a total return of 106% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.