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A Quick Analysis On TP Group's (LON:TPG) CEO Compensation

Simply Wall St
·3-min read

Phil Cartmell is the CEO of TP Group plc (LON:TPG), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for TP Group.

See our latest analysis for TP Group

How Does Total Compensation For Phil Cartmell Compare With Other Companies In The Industry?

Our data indicates that TP Group plc has a market capitalization of UK£44m, and total annual CEO compensation was reported as UK£403k for the year to December 2019. Notably, that's a decrease of 18% over the year before. In particular, the salary of UK£300.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below UK£154m, we found that the median total CEO compensation was UK£368k. This suggests that TP Group remunerates its CEO largely in line with the industry average. Furthermore, Phil Cartmell directly owns UK£179k worth of shares in the company.

Component

2019

2018

Proportion (2019)

Salary

UK£300k

UK£285k

74%

Other

UK£103k

UK£204k

26%

Total Compensation

UK£403k

UK£489k

100%

Talking in terms of the industry, salary represented approximately 48% of total compensation out of all the companies we analyzed, while other remuneration made up 52% of the pie. It's interesting to note that TP Group pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
ceo-compensation

TP Group plc's Growth

TP Group plc has reduced its earnings per share by 27% a year over the last three years. Its revenue is up 33% over the last year.

The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has TP Group plc Been A Good Investment?

Given the total shareholder loss of 16% over three years, many shareholders in TP Group plc are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As we noted earlier, TP Group pays its CEO in line with similar-sized companies belonging to the same industry. However, revenues have increased over the past year, a positive sign for the company. Contrarily, shareholder returns are in the red over the same stretch. EPS is also not growing, undoubtedly leading to further headaches. It's tough for us to say Phil is overpaid but a mixed bag in terms of performance will surely irk shareholders and reduce chances of a raise.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for TP Group that you should be aware of before investing.

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.