Here's What We Learned About The CEO Pay At TClarke plc (LON:CTO)
This article reflects the compensation paid to Mark Lawrence who has served as CEO of TClarke plc (LON: CTO) since 2010. This analysis also evaluates whether TClarke is adequately paying its CEO, taking into account recent earnings growth and total shareholder return.
Check out our latest analysis for TClarke
Compare TClarke plc CEO compensation with the industry
Our data shows that TClarke plc has a market capitalization of £ 37m and that the total annual CEO compensation for the year ended December 2019 was £ 1.1m. We find that this is an 8.5% increase over the previous year. While this analysis focuses on total compensation, it should be recognized that the salary component is lower at £ 314,000 in the UK.
For comparison, other companies in the industry with market capitalizations of less than £ 155 million in the UK reported an average total CEO compensation of £ 355,000. We can therefore conclude that Mark Lawrence receives higher pay than the industry median. In addition, Mark Lawrence directly owns shares in the company worth £ 192,000 in the UK.
UK £ 314k
UK £ 302k
UK £ 833k
UK £ 755k
UK £ 1.1m
UK £ 1.1m
At industry level, around 63% of total compensation corresponds to salary and 37% to other compensation. Compared to the entire industry, TClarke provides a lower portion of the compensation. If non-salary compensation dominates total compensation, it is an indicator that the executive's salary is tied to company performance.
Growth of TClarke plc
TClarke plc has reduced earnings per share by 2.6% per year over the past three years. Last year sales fell by 22%.
The lack of EPS growth is certainly not impressive. And the fact that revenues are down from last year paints an ugly picture. These factors suggest that business performance might not really justify a high wage package for the CEO. Historical performance can sometimes be a good indicator of what's coming next. However, if you want a glimpse into the future of the company, this free analyst forecast visualization might interest you.
Was TClarke plc a good investment?
With a total return of 19% over three years, TClarke plc shareholders would generally be reasonably satisfied. But they probably wouldn't be so happy to believe that the CEO should get paid more than normal for companies of this size.
As mentioned earlier, Mark is paid more than normal for CEOs of similar sized companies in the same industry. Meanwhile, EPS hasn't grown enough in the past three years to impress us. And the shareholder returns are decent, but not great. You might want to dig deeper because we don't think the amount that Mark is making is warranted.
While CEO compensation is an important factor, there are other areas that you should also be aware of. That's why we did a little digging and identified 5 warning signs for TClarke that investors should think about before investing any capital in this stock.
Important Note: TClarke is an exciting stock, but we know investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better on this list of interesting, high ROE, low debt companies.
This article from Simply Wall St is of a general nature. It is not a recommendation to buy or sell shares and does not take into account your goals or your financial situation. We want to provide you with a long-term, focused analysis based on fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned.
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