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In 1998 Simon G. Caffyn was appointed CEO of Caffyns plc (LON:CFYN). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Caffyns
How Does Simon G. Caffyn’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Caffyns plc has a market cap of UK£10m, and is paying total annual CEO compensation of UK£302k. (This number is for the twelve months until 2018). While we always look at total compensation first, we note that the salary component is less, at UK£278k. We looked at a group of companies with market capitalizations under UK£157m, and the median CEO compensation was UK£247k.
That means Simon G. Caffyn receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Caffyns, below.
Is Caffyns plc Growing?
Caffyns plc has reduced its earnings per share by an average of 75% a year, over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.
Unfortunately, earnings per share have trended lower over the last three years. And the flat revenue is seriously uninspiring. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Caffyns plc Been A Good Investment?
With a three year total loss of 21%, Caffyns plc would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
Simon G. Caffyn is paid around the same as most CEOs of similar size companies.
Returns have been disappointing and the company is not growing its earnings per share. Few would argue that it’s wise for the company to pay any more, before returns improve. Whatever your view on compensation, you might want to check if insiders are buying or selling Caffyns shares (free trial).