Yahoo Finance Does Ocado Group plc's (LON:OCDO) CEO Pay Matter?
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Tim Steiner became the CEO of Ocado Group plc (LON:OCDO) in 2000. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Ocado Group
How Does Tim Steiner's Compensation Compare With Similar Sized Companies?
Our data indicates that Ocado Group plc is worth UK£8.6b, and total annual CEO compensation is UK£3.1m. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at UK£606k. We took a group of companies with market capitalizations over UK£6.4b, and calculated the median CEO total compensation to be UK£3.7m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
So Tim Steiner is paid around the average of 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, below, how CEO compensation at Ocado Group has changed over time.
Is Ocado Group plc Growing?
Over the last three years Ocado Group plc has shrunk its earnings per share by an average of 110% per year (measured with a line of best fit). It achieved revenue growth of 9.9% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.
Has Ocado Group plc Been A Good Investment?
Most shareholders would probably be pleased with Ocado Group plc for providing a total return of 448% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Tim Steiner is paid around the same as most CEOs of large companies.
The company isn't growing earnings per share, but shareholder returns have been strong over the last three years. So we doubt many are complaining about the fairly normal CEO pay. Shareholders may want to check for free if Ocado Group insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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. Thank you for reading.
