Yahoo Finance Does Close Brothers Group plc’s (LON:CBG) CEO Pay Reflect Performance?
Per Prebensen has been the CEO of Close Brothers Group plc (LON:CBG) since 2009. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Close Brothers Group
How Does Per Prebensen’s Compensation Compare With Similar Sized Companies?
Our data indicates that Close Brothers Group plc is worth UK£2.3b, and total annual CEO compensation is UK£3m. That’s below the compensation, last year. We looked at a group of companies with market capitalizations from UK£1.5b to UK£4.9b, and the median CEO compensation was UK£2m.
Thus we can conclude that Per Prebensen receives more in total compensation than the median of a group of companies in the same market, and of similar size to Close Brothers Group plc. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Close Brothers Group has changed over time.
Is Close Brothers Group plc Growing?
On average over the last three years, Close Brothers Group plc has grown earnings per share (EPS) by 4.6% each year. Its revenue is up 5.9% over last year.
I’m not particularly impressed by the revenue growth, 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.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Close Brothers Group plc Been A Good Investment?
Close Brothers Group plc has served shareholders reasonably well, with a total return of 14% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary…
We compared total CEO remuneration at Close Brothers Group plc with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Over the last three years returns to investors have been uninspiring, and we would have liked to see stronger business growth. In conclusion we think the company should definitely focus on improving the business before awarding any large pay rises. So you may want to check if insiders are buying Close Brothers Group plc shares with their own money (free access).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
