Yahoo Finance Our Take On GVC Holdings PLC's (LON:GVC) CEO Salary
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Kenny Alexander has been the CEO of GVC Holdings PLC (LON:GVC) since 2007. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for GVC Holdings
How Does Kenny Alexander's Compensation Compare With Similar Sized Companies?
Our data indicates that GVC Holdings PLC is worth UK£3.5b, and total annual CEO compensation is UK£21m. (This is based on the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at UK£838k. We looked at a group of companies with market capitalizations from €1.8b to €5.7b, and the median CEO total compensation was €2.3m.
Thus we can conclude that Kenny Alexander receives more in total compensation than the median of a group of companies in the same market, and of similar size to GVC Holdings PLC. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at GVC Holdings has changed from year to year.
Is GVC Holdings PLC Growing?
Over the last three years GVC Holdings PLC has grown its earnings per share (EPS) by an average of 36% per year (using a line of best fit). In the last year, its revenue is up 272%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has GVC Holdings PLC Been A Good Investment?
GVC Holdings PLC has generated a total shareholder return of 9.4% over three years, so most shareholders wouldn't be too disappointed. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
We compared the total CEO remuneration paid by GVC Holdings PLC, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. We also think investors are doing ok, over the same time period. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at GVC Holdings.
If you want to buy a stock that is better than GVC Holdings, this free list of high return, low debt companies is a great place to look.
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.
