Yahoo Finance Does Computacenter's (LON:CCC) CEO Salary Compare Well With Industry Peers?
Mike Norris has been the CEO of Computacenter plc (LON:CCC) since 1994, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Computacenter pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for Computacenter
Comparing Computacenter plc's CEO Compensation With the industry
At the time of writing, our data shows that Computacenter plc has a market capitalization of UK£2.5b, and reported total annual CEO compensation of UK£2.9m for the year to December 2019. We note that's an increase of 40% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£551k.
For comparison, other companies in the same industry with market capitalizations ranging between UK£1.5b and UK£4.9b had a median total CEO compensation of UK£1.2m. Hence, we can conclude that Mike Norris is remunerated higher than the industry median. What's more, Mike Norris holds UK£28m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2019 | 2018 | Proportion (2019) |
Salary | UK£551k | UK£540k | 19% |
Other | UK£2.4m | UK£1.5m | 81% |
Total Compensation | UK£2.9m | UK£2.1m | 100% |
On an industry level, roughly 69% of total compensation represents salary and 31% is other remuneration. It's interesting to note that Computacenter allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Computacenter plc's Growth Numbers
Computacenter plc's earnings per share (EPS) grew 15% per year over the last three years. It achieved revenue growth of 6.6% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Computacenter plc Been A Good Investment?
We think that the total shareholder return of 143%, over three years, would leave most Computacenter plc shareholders smiling. 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.
To Conclude...
As we touched on above, Computacenter plc is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Importantly though, EPS growth and shareholder returns are very impressive over the last three years. Considering such exceptional results for the company, we'd venture to say CEO compensation is fair. The pleasing shareholder returns are the cherry on top. We wouldn't be wrong in saying that shareholders feel that Mike's performance creates value for the company.
So you may want to check if insiders are buying Computacenter shares with their own money (free access).
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
