Yahoo Finance Is Greencore Group plc’s (LON:GNC) CEO Salary Justified?
Patrick Coveney became the CEO of Greencore Group plc (LON:GNC) in 2008. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Greencore Group
How Does Patrick Coveney’s Compensation Compare With Similar Sized Companies?
According to our data, Greencore Group plc has a market capitalization of UK£1.3b, and pays its CEO total annual compensation worth UK£1.4m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at UK£699k. We examined companies with market caps from UK£784m to UK£2.5b, and discovered that the median CEO compensation of that group was UK£1.5m.
So Patrick Coveney 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 a visual representation of the CEO compensation at Greencore Group, below.
Is Greencore Group plc Growing?
Over the last three years Greencore Group plc has shrunk its earnings per share by an average of 64% per year. Its revenue is up 42% over last year.
The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Greencore Group plc Been A Good Investment?
With a three year total loss of 26%, Greencore Group plc would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
Remuneration for Patrick Coveney is close enough to the median pay for a CEO of a similar sized company .
We would like to see somewhat stronger per share growth. And it’s hard to argue that the returns over the last three years have delighted. So suffice it to say we don’t think the compensation is modest! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Greencore Group.
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
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.
