Yahoo Finance Is Britvic plc’s (LON:BVIC) CEO Being Overpaid?
In 2013 Simon Litherland was appointed CEO of Britvic plc (LON:BVIC). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
Check out our latest analysis for Britvic
How Does Simon Litherland’s Compensation Compare With Similar Sized Companies?
Our data indicates that Britvic plc is worth UK£2.1b, and total annual CEO compensation is UK£2.1m. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at UK£600k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£1.6b to UK£5.0b. The median total CEO compensation was UK£2.1m.
That means Simon Litherland receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Britvic has changed from year to year.
Is Britvic plc Growing?
Over the last three years, Britvic plc has not seen its earnings per share change much, though they have improved slightly. In the last year, its revenue is up 8.1%.
I’d prefer higher revenue growth, but I’m happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Britvic plc Been A Good Investment?
With a total shareholder return of 33% over three years, Britvic plc shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary…
Simon Litherland is paid around what is normal the leaders of comparable size companies.
We see room for improved growth, as well as fairly unremarkable returns over the last three years. While there is room for improvement, we haven’t seen evidence to suggest the pay is too generous. Whatever your view on compensation, you might want to check if insiders are buying or selling Britvic shares (free trial).
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
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.
