Yahoo Finance Does St. Modwen Properties PLC's (LON:SMP) CEO Salary Reflect Performance?
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Mark Allan became the CEO of St. Modwen Properties PLC (LON:SMP) in 2016. 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.
See our latest analysis for St. Modwen Properties
How Does Mark Allan's Compensation Compare With Similar Sized Companies?
According to our data, St. Modwen Properties PLC has a market capitalization of UK£964m, and pays its CEO total annual compensation worth UK£2.4m. (This number is for the twelve months until November 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£579k. When we examined a selection of companies with market caps ranging from UK£788m to UK£2.5b, we found the median CEO total compensation was UK£1.3m.
It would therefore appear that St. Modwen Properties PLC pays Mark Allan more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at St. Modwen Properties has changed over time.
Is St. Modwen Properties PLC Growing?
St. Modwen Properties PLC has reduced its earnings per share by an average of 42% a year, over the last three years (measured with a line of best fit). Its revenue is up 36% over last year.
The reduction in earnings per share, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has St. Modwen Properties PLC Been A Good Investment?
Most shareholders would probably be pleased with St. Modwen Properties PLC for providing a total return of 70% 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...
We examined the amount St. Modwen Properties PLC pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
While we generally prefer to see stronger EPS growth, there's no arguing with the strong returns to shareholders, over the last three years. So, considering these tasty returns, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling St. Modwen Properties (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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.
