Yahoo Finance Does Britvic plc's (LON:BVIC) CEO Salary Reflect Performance?
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
In 2013 Simon Litherland was appointed CEO of Britvic plc (LON:BVIC). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. 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£2.4b, and total annual CEO compensation is UK£2.1m. (This is based on the year to September 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£609k. When we examined a selection of companies with market caps ranging from UK£1.6b to UK£5.0b, we found the median CEO total compensation was UK£1.9m.
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.
You can see a visual representation of the CEO compensation at Britvic, below.
Is Britvic plc Growing?
Over the last three years Britvic plc has grown its earnings per share (EPS) by an average of 1.2% per year (using a line of best fit). Its revenue is up 5.3% over last year.
I would argue that the improvement in revenue isn't particularly impressive, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. It could be important to check this free visual depiction of what analysts expect for the future.
Has Britvic plc Been A Good Investment?
I think that the total shareholder return of 56%, over three years, would leave most Britvic 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...
Remuneration for Simon Litherland is close enough to the median pay for a CEO of a similar sized company .
The company isn't showing particularly great growth, but shareholder returns have been pleasing. So all things considered I'd venture that the CEO pay is appropriate. Shareholders may want to check for free if Britvic insiders are buying or selling shares.
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.
