Yahoo Finance Does Games Workshop Group PLC's (LON:GAW) CEO Pay Matter?
Kevin Rountree became the CEO of Games Workshop Group PLC (LON:GAW) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. 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 process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Games Workshop Group
How Does Kevin Rountree's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Games Workshop Group PLC has a market cap of UK£2.0b, and reported total annual CEO compensation of UK£1.1m for the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at UK£551k. We examined companies with market caps from UK£1.5b to UK£4.9b, and discovered that the median CEO total compensation of that group was UK£1.7m.
Most shareholders would consider it a positive that Kevin Rountree takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Games Workshop Group has changed over time.
Is Games Workshop Group PLC Growing?
Games Workshop Group PLC has increased its earnings per share (EPS) by an average of 45% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 16%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Games Workshop Group PLC Been A Good Investment?
Most shareholders would probably be pleased with Games Workshop Group PLC for providing a total return of 980% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
It appears that Games Workshop Group PLC remunerates its CEO below most similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Kevin Rountree deserves a raise! Most shareholders like to see a modestly paid CEO combined with strong performance by the company. The cherry on top would be if company insiders are buying shares with their own money. Shareholders may want to check for free if Games Workshop Group insiders are buying or selling shares.
Important note: Games Workshop Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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