Yahoo Finance What Did Carpetright plc's (LON:CPR) CEO Take Home Last Year?
Wilf Walsh became the CEO of Carpetright plc (LON:CPR) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Carpetright
How Does Wilf Walsh's Compensation Compare With Similar Sized Companies?
According to our data, Carpetright plc has a market capitalization of UK£14m, and paid its CEO total annual compensation worth UK£579k over the year to April 2019. We think total compensation is more important but we note that the CEO salary is lower, at UK£459k. We examined a group of similar sized companies, with market capitalizations of below UK£155m. The median CEO total compensation in that group is UK£249k.
As you can see, Wilf Walsh is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Carpetright plc is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Carpetright, below.
Is Carpetright plc Growing?
Carpetright plc has reduced its earnings per share by an average of 84% a year, over the last three years (measured with a line of best fit). It saw its revenue drop 13% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. 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 Carpetright plc Been A Good Investment?
With a three year total loss of 98%, Carpetright plc would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared total CEO remuneration at Carpetright 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.
Neither earnings per share nor revenue have been growing sufficiently to impress us, over the last three years. Over the same period, investors would have come away with nothing in the way of share price gains. This analysis suggests to us that the CEO is paid too generously! So you may want to check if insiders are buying Carpetright shares with their own money (free access).
Important note: Carpetright may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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.
