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What Did Halma plc's (LON:HLMA) CEO Take Home Last Year?

Andrew Williams became the CEO of Halma plc (LON:HLMA) in 2005. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Halma

How Does Andrew Williams's Compensation Compare With Similar Sized Companies?

Our data indicates that Halma plc is worth UK£7.4b, and total annual CEO compensation is UK£3.4m. (This figure is for the year to March 2019). That's actually a decrease on the year before. We think total compensation is more important but we note that the CEO salary is lower, at UK£653k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£3.3b to UK£9.8b. The median total CEO compensation was UK£2.8m.

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So Andrew Williams receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Halma, below.

LSE:HLMA CEO Compensation, September 1st 2019
LSE:HLMA CEO Compensation, September 1st 2019

Is Halma plc Growing?

On average over the last three years, Halma plc has grown earnings per share (EPS) by 17% each year (using a line of best fit). It achieved revenue growth of 13% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Halma plc Been A Good Investment?

I think that the total shareholder return of 92%, over three years, would leave most Halma plc shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Andrew Williams is paid around what is normal the leaders of comparable size companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Whatever your view on compensation, you might want to check if insiders are buying or selling Halma shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Thank you for reading.