Yahoo Finance What Did Johnson Matthey Plc's (LON:JMAT) CEO Take Home Last Year?
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In 2014 Robert MacLeod was appointed CEO of Johnson Matthey Plc (LON:JMAT). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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 Johnson Matthey
How Does Robert MacLeod's Compensation Compare With Similar Sized Companies?
According to our data, Johnson Matthey Plc has a market capitalization of UK£5.9b, and pays its CEO total annual compensation worth UK£2.0m. (This number is for the twelve months until March 2018). We think total compensation is more important but we note that the CEO salary is lower, at UK£798k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£3.2b to UK£9.5b. The median total CEO compensation was UK£2.8m.
That means Robert MacLeod 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.
You can see, below, how CEO compensation at Johnson Matthey has changed over time.
Is Johnson Matthey Plc Growing?
Johnson Matthey Plc has increased its earnings per share (EPS) by an average of 8.9% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -24%.
I generally like to see a little revenue growth, but I'm happy with the EPS growth. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has Johnson Matthey Plc Been A Good Investment?
With a total shareholder return of 13% over three years, Johnson Matthey Plc shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
Remuneration for Robert MacLeod is close enough to the median pay for a CEO of a similar sized company .
We see room for improved growth, as well as fairly unremarkable returns over the last three years. But we don't think the CEO compensation is a problem. Whatever your view on compensation, you might want to check if insiders are buying or selling Johnson Matthey shares (free trial).
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.
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.
