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How Much Did Card Factory plc’s (LON:CARD) CEO Pocket Last Year? – Simply Wall St News

Karen Hubbard has been the CEO of Card Factory plc (LON:CARD) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Card Factory

How Does Karen Hubbard’s Compensation Compare With Similar Sized Companies?

According to our data, Card Factory plc has a market capitalization of UK£207m, and paid its CEO total annual compensation worth UK£611k over the year to January 2019. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at UK£471k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£80m to UK£320m. The median total CEO compensation was UK£558k.

So Karen Hubbard is paid around the average of the companies we looked at. 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 Card Factory, below.

LSE:CARD CEO Compensation, March 13th 2020
LSE:CARD CEO Compensation, March 13th 2020

Is Card Factory plc Growing?

Card Factory plc has reduced its earnings per share by an average of 11% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 4.3% over the last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the modest revenue growth over 12 months isn’t much comfort against the reduced earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.

Has Card Factory plc Been A Good Investment?

Since shareholders would have lost about 73% over three years, some Card Factory plc shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary…

Karen Hubbard 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. Shifting gears from CEO pay for a second, we’ve spotted 4 warning signs for Card Factory you should be aware of, and 1 of them is a bit concerning.

If you want to buy a stock that is better than Card Factory, this free list of high return, low debt companies is a great place to look.

If you spot an error that warrants correction, please contact the editor at [email protected]. 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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