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Matthew Crummack is the CEO of GoCo Group plc (LON:GOCO), 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 GoCo Group.
How Does Total Compensation For Matthew Crummack Compare With Other Companies In The Industry?
At the time of writing, our data shows that GoCo Group plc has a market capitalization of UK£410m, and reported total annual CEO compensation of UK£1.1m for the year to December 2019. We note that's a decrease of 22% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£450k.
On comparing similar companies from the same industry with market caps ranging from UK£159m to UK£635m, we found that the median CEO total compensation was UK£786k. Accordingly, our analysis reveals that GoCo Group plc pays Matthew Crummack north of the industry median. Moreover, Matthew Crummack also holds UK£105k worth of GoCo Group stock directly under their own name.
On an industry level, roughly 67% of total compensation represents salary and 33% is other remuneration. It's interesting to note that GoCo Group 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 GoCo Group plc's Growth Numbers
GoCo Group plc has reduced its earnings per share by 7.0% a year over the last three years. In the last year, its revenue changed by just 0.1%.
The decline in earnings is a bit concerning. 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. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has GoCo Group plc Been A Good Investment?
With a three year total loss of 12% for the shareholders, GoCo Group plc would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
As we noted earlier, GoCo Group pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Disappointingly, share price gains over the last three years have failed to materialize. Arguably worse, we've been waiting for positive earnings growth for the last three years. Considering such poor performance, we think shareholders might be concerned if the CEO's compensation were to grow.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 3 warning signs for GoCo Group that investors should look into moving forward.
Important note: GoCo Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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