Gerald Kaye became the CEO of Helical plc (LON:HLCL) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Helical
How Does Gerald Kaye's Compensation Compare With Similar Sized Companies?
According to our data, Helical plc has a market capitalization of UK£414m, and paid its CEO total annual compensation worth UK£1.7m over the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£532k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from UK£162m to UK£649m, and the median CEO total compensation was UK£775k.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Helical. Talking in terms of the sector, salary represented approximately 54% of total compensation out of all the companies we analysed, while other remuneration made up 46% of the pie. Readers will want to know that Helical pays a modest slice of remuneration through salary, as compared to the wider sector.
Thus we can conclude that Gerald Kaye receives more in total compensation than the median of a group of companies in the same market, and of similar size to Helical plc. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business. You can see, below, how CEO compensation at Helical has changed over time.
Is Helical plc Growing?
Over the last three years Helical plc has shrunk its earnings per share by an average of 5.0% per year (measured with a line of best fit). Its revenue is down 64% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Helical plc Been A Good Investment?
With a total shareholder return of 13% over three years, Helical plc shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
We compared the total CEO remuneration paid by Helical plc, and compared it to remuneration at a group of similar sized companies. 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. And while shareholder returns have been respectable, they have hardly been superb. So you may want to delve deeper, because we don't think the CEO pay is too low. CEO compensation is an important area to keep your eyes on, but we've also identified 4 warning signs for Helical (1 is potentially serious!) that you should be aware of before investing here.
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.
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.
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. Thank you for reading.
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Is Helical plc's (LON:HLCL) CEO Paid At A Competitive Rate? - Yahoo Finance
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