Yahoo Finance Is Greggs plc's (LON:GRG) CEO Paid Enough Relative To Peers?
Roger Whiteside has been the CEO of Greggs plc (LON:GRG) since 2013. 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. 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.
See our latest analysis for Greggs
How Does Roger Whiteside's Compensation Compare With Similar Sized Companies?
Our data indicates that Greggs plc is worth UK£2.4b, and total annual CEO compensation is UK£1.5m. (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£549k. When we examined a selection of companies with market caps ranging from UK£1.6b to UK£5.1b, we found the median CEO total compensation was UK£1.9m.
So Roger Whiteside is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Greggs, below.
Is Greggs plc Growing?
On average over the last three years, Greggs plc has grown earnings per share (EPS) by 3.4% each year (using a line of best fit). It achieved revenue growth of 7.2% over the last year.
I'd prefer higher revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. Shareholders might be interested in this free visualization of analyst forecasts.
Has Greggs plc Been A Good Investment?
Boasting a total shareholder return of 150% over three years, Greggs plc has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Roger Whiteside is paid around the same as most CEOs of similar size companies.
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So we can conclude that on this analysis the CEO compensation seems pretty sound. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Greggs (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.
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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.
