Yahoo Finance What Did Games Workshop Group PLC’s (LON:GAW) CEO Take Home Last Year?
Kevin Rountree has been the CEO of Games Workshop Group PLC (LON:GAW) since 2015. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Games Workshop Group
How Does Kevin Rountree’s Compensation Compare With Similar Sized Companies?
According to our data, Games Workshop Group PLC has a market capitalization of UK£1.0b, and pays its CEO total annual compensation worth UK£438k. (This is based on the year to 2018). Notably, the salary of UK£428k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations from UK£787m to UK£2.5b, and the median CEO compensation was UK£1.5m.
Most shareholders would consider it a positive that Kevin Rountree takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Games Workshop Group, below.
Is Games Workshop Group PLC Growing?
Over the last three years Games Workshop Group PLC has grown its earnings per share (EPS) by an average of 61% per year (using a line of best fit). In the last year, its revenue is up 38%.
This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Games Workshop Group PLC Been A Good Investment?
I think that the total shareholder return of 633%, over three years, would leave most Games Workshop Group PLC shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary…
It looks like Games Workshop Group PLC pays its CEO less than similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. The strong history of shareholder returns might even have some thinking that Kevin Rountree deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. It would be even more positive if company insiders are buying shares. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Games Workshop Group (free visualization of insider trades).
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.
