In 2013 Kevin Nolan was appointed CEO of Chamberlin plc (LON:CMH). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Chamberlin
How Does Kevin Nolan's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Chamberlin plc has a market cap of UK£2.6m, and is paying total annual CEO compensation of UK£265k. (This is based on the year to March 2019). That's a modest increase of 6.4% on the prior year year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£221k. We looked at a group of companies with market capitalizations under UK£162m, and the median CEO total compensation was UK£256k.
So Kevin Nolan receives a similar amount to the median CEO pay, amongst the companies we looked at. 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.
You can see, below, how CEO compensation at Chamberlin has changed over time.
Is Chamberlin plc Growing?
Chamberlin plc has reduced its earnings per share by an average of 82% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 9.3%.
Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Chamberlin plc Been A Good Investment?
With a three year total loss of 45%, Chamberlin plc would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Kevin Nolan 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! So you may want to check if insiders are buying Chamberlin shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.