Yahoo Finance Is The Berkeley Group Holdings plc’s (LON:BKG) CEO Pay Fair?
Rob Perrins has been the CEO of The Berkeley Group Holdings plc (LON:BKG) since 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Berkeley Group Holdings
How Does Rob Perrins’s Compensation Compare With Similar Sized Companies?
Our data indicates that The Berkeley Group Holdings plc is worth UK£4.5b, and total annual CEO compensation is UK£7.8m. (This figure is for the year to 2018). We think total compensation is more important but we note that the CEO salary is lower, at UK£545k. We looked at a group of companies with market capitalizations from UK£3.1b to UK£9.4b, and the median CEO compensation was UK£2.5m.
As you can see, Rob Perrins is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean The Berkeley Group Holdings plc is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Berkeley Group Holdings has changed over time.
Is The Berkeley Group Holdings plc Growing?
The Berkeley Group Holdings plc has increased its earnings per share (EPS) by an average of 23% a year, over the last three years It saw its revenue drop -9.5% over the last year.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important.
It could be important to check this free visual depiction of what analysts expect for the future.
Has The Berkeley Group Holdings plc Been A Good Investment?
The Berkeley Group Holdings plc has served shareholders reasonably well, with a total return of 13% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary…
We compared the total CEO remuneration paid by The Berkeley Group Holdings plc, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. We also think investors are doing ok, over the same time period. While it may be worth researching further, we don’t see a problem with the CEO pay, given the good EPS growth. Whatever your view on compensation, you might want to check if insiders are buying or selling Berkeley Group Holdings shares (free trial).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
