Yahoo Finance Does Lok’nStore Group plc’s (LON:LOK) CEO Salary Reflect Performance?
Andrew Jacobs became the CEO of Lok’nStore Group plc (LON:LOK) in 2004. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 Lok’nStore Group
How Does Andrew Jacobs’s Compensation Compare With Similar Sized Companies?
Our data indicates that Lok’nStore Group plc is worth UK£118m, and total annual CEO compensation is UK£230k. That’s less than last year. We took a group of companies with market capitalizations below UK£157m, and calculated the median CEO compensation to be UK£245k.
So Andrew Jacobs is paid around the average of 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.
The graphic below shows how CEO compensation at Lok’nStore Group has changed from year to year.
Is Lok’nStore Group plc Growing?
Over the last three years Lok’nStore Group plc has shrunk its earnings per share by an average of 2.0% per year. Its revenue is up 6.6% over last year.
In the last three years the company has failed to grow earnings per s. The modest increase in revenue in the last year isn’t enough to make me overlook the disappointing change in earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Lok’nStore Group plc Been A Good Investment?
Boasting a total shareholder return of 43% over three years, Lok’nStore Group plc has done well by shareholders. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
In Summary…
Remuneration for Andrew Jacobs is close enough to the median pay for a CEO of a similar sized company .
We feel that earnings per share have been a bit disappointing, but it’s nice to see positive shareholder returns over the last three years. So we doubt many are complaining about the fairly normal CEO pay. Whatever your view on compensation, you might want to check if insiders are buying or selling Lok’nStore Group plc shares (free trial).
Or you might prefer examine intently this intuitive graph showing past earnings 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.
