Marco Gobbetti became the CEO of Burberry Group plc (LON:BRBY) in 2017. This analysis aims first to contrast CEO compensation with other large companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Marco Gobbetti's Compensation Compare With Similar Sized Companies?
According to our data, Burberry Group plc has a market capitalization of UK£9.0b, and paid its CEO total annual compensation worth UK£4.0m over the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£1.1m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations over UK£6.1b and the median CEO total compensation was UK£3.5m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
So Marco Gobbetti is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Burberry Group, below.
Is Burberry Group plc Growing?
Burberry Group plc has increased its earnings per share (EPS) by an average of 12% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 3.4%.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has Burberry Group plc Been A Good Investment?
Most shareholders would probably be pleased with Burberry Group plc for providing a total return of 62% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Marco Gobbetti is paid around what is normal the leaders of larger companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Burberry Group.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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