Yahoo Finance Does Informa plc's (LON:INF) CEO Salary Compare Well With Others?
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Stephen Carter has been the CEO of Informa plc (LON:INF) since 2013. This analysis aims first to contrast CEO compensation with other large companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Informa
How Does Stephen Carter's Compensation Compare With Similar Sized Companies?
Our data indicates that Informa plc is worth UK£11b, and total annual CEO compensation is UK£4.1m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at UK£829k. We looked at a group of companies with market capitalizations over UK£6.4b and the median CEO total compensation was UK£3.8m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
So Stephen Carter receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Informa has changed over time.
Is Informa plc Growing?
Over the last three years Informa plc has grown its earnings per share (EPS) by an average of 6.4% per year (using a line of best fit). Its revenue is up 35% over last year.
It's hard to interpret the strong revenue growth as anything other than a positive. And in that context, the modest EPS improvement certainly isn't shabby. I wouldn't say this is necessarily top notch growth, but it is certainly promising. Shareholders might be interested in this free visualization of analyst forecasts.
Has Informa plc Been A Good Investment?
Boasting a total shareholder return of 35% over three years, Informa plc has done well by shareholders. 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...
Remuneration for Stephen Carter is close enough to the median pay for a CEO of a large company .
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So all things considered I'd venture that the CEO pay is appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Informa (free visualization of insider trades).
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.
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