Yahoo Finance Is Halma plc's (LON:HLMA) CEO Paid Enough Relative To Peers?
In 2005 Andrew Williams was appointed CEO of Halma plc (LON:HLMA). This analysis aims first to contrast CEO compensation with other large companies. After that, we will consider the growth in the business. 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.
View our latest analysis for Halma
How Does Andrew Williams's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Halma plc has a market cap of UK£8.3b, and reported total annual CEO compensation of UK£3.4m for the year to March 2019. We think total compensation is more important but we note that the CEO salary is lower, at UK£653k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We took a group of companies with market capitalizations over UK£6.1b, and calculated the median CEO total compensation to be UK£3.6m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
That means Andrew Williams receives fairly typical remuneration for the CEO of a large company. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Halma has changed from year to year.
Is Halma plc Growing?
On average over the last three years, Halma plc has grown earnings per share (EPS) by 15% each year (using a line of best fit). In the last year, its revenue is up 11%.
This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Halma plc Been A Good Investment?
Most shareholders would probably be pleased with Halma plc for providing a total return of 132% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Remuneration for Andrew Williams is close enough to the median pay for a CEO of a large company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Halma (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.
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.
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. Thank you for reading.
