Yahoo Finance Does B&M European Value Retail S.A.'s (LON:BME) CEO Salary Compare Well With Others?
In 2004 Simon Arora was appointed CEO of B&M European Value Retail S.A. (LON:BME). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for B&M European Value Retail
How Does Simon Arora's Compensation Compare With Similar Sized Companies?
Our data indicates that B&M European Value Retail S.A. is worth UK£4.0b, and total annual CEO compensation was reported as UK£1.2m for the year to March 2019. While we always look at total compensation first, we note that the salary component is less, at UK£631k. When we examined a selection of companies with market caps ranging from UK£3.1b to UK£9.2b, we found the median CEO total compensation was UK£2.6m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at B&M European Value Retail has changed over time.
Is B&M European Value Retail S.A. Growing?
B&M European Value Retail S.A. has increased its earnings per share (EPS) by an average of 9.4% a year, over the last three years (using a line of best fit). Its revenue is up 18% over last year.
This revenue growth could really point to a brighter future. And, while modest, the earnings per share growth is noticeable. So while performance isn't amazing, we think it really does seem quite respectable. You might want to check this free visual report on analyst forecasts for future earnings.
Has B&M European Value Retail S.A. Been A Good Investment?
Most shareholders would probably be pleased with B&M European Value Retail S.A. for providing a total return of 40% over three years. 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...
B&M European Value Retail S.A. is currently paying its CEO below what is normal for companies of its size.
Simon Arora is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years. Although we could see higher growth, we'd argue the remuneration is modest, based on these observations. Shareholders may want to check for free if B&M European Value Retail insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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. Thank you for reading.
