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Does Marston’s PLC’s (LON:MARS) CEO Salary Reflect Performance?

In 2001 Ralph Findlay was appointed CEO of Marston’s PLC (LON:MARS). 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. 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.

View our latest analysis for Marston’s

How Does Ralph Findlay’s Compensation Compare With Similar Sized Companies?

According to our data, Marston’s PLC has a market capitalization of UK£639m, and pays its CEO total annual compensation worth UK£803k. That’s actually a decrease on the year before. When we examined a selection of companies with market caps ranging from UK£311m to UK£1.2b, we found the median CEO compensation was UK£944k.

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So Ralph Findlay receives a similar amount to the median CEO pay, amongst 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 Marston’s, below.

LSE:MARS CEO Compensation November 21st 18
LSE:MARS CEO Compensation November 21st 18

Is Marston’s PLC Growing?

Over the last three years Marston’s PLC has grown its earnings per share (EPS) by an average of 41% per year. In the last year, its revenue is up 15%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has Marston’s PLC Been A Good Investment?

With a three year total loss of 27%, Marston’s PLC would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

Ralph Findlay is paid around the same as most CEOs of similar size companies.

We like that the company is growing EPS, but it’s disappointing to see negative shareholder returns over three years. Considering the the positives we don’t think the CEO pays is too high, but it’s certainly hard to argue it is too low.

Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of 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.