Yahoo Finance Is British Land Company Plc's (LON:BLND) CEO Salary Justified?
In 2009 Chris Grigg was appointed CEO of British Land Company Plc (LON:BLND). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for British Land
How Does Chris Grigg's Compensation Compare With Similar Sized Companies?
Our data indicates that British Land Company Plc is worth UK£5.6b, and total annual CEO compensation was reported as UK£2.0m for the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£857k. When we examined a selection of companies with market caps ranging from UK£3.0b to UK£9.1b, we found the median CEO total compensation was UK£2.8m.
That means Chris Grigg 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, below, how CEO compensation at British Land has changed over time.
Is British Land Company Plc Growing?
On average over the last three years, British Land Company Plc has shrunk earnings per share by 82% each year (measured with a line of best fit). In the last year, its revenue is down 22%.
Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has British Land Company Plc Been A Good Investment?
British Land Company Plc has generated a total shareholder return of 10% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
Chris Grigg is paid around what is normal the leaders of comparable size companies.
We're not seeing great strides in earnings per share, and total returns were decent but not amazing in the last three years. We're not saying the CEO pay is too generous, but one might argue that the company should improve returns to shareholders before increasing it. Shareholders may want to check for free if British Land insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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