Yahoo Finance Here's What We Think About LondonMetric Property's (LON:LMP) CEO Pay
Andrew Jones has been the CEO of LondonMetric Property Plc (LON:LMP) since 2013, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for LondonMetric Property.
Note: The company does not report funds from operations, and as a result, we have used earnings per share in our analysis.
View our latest analysis for LondonMetric Property
How Does Total Compensation For Andrew Jones Compare With Other Companies In The Industry?
At the time of writing, our data shows that LondonMetric Property Plc has a market capitalization of UK£2.0b, and reported total annual CEO compensation of UK£2.8m for the year to March 2020. That's a modest increase of 4.6% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£544k.
For comparison, other companies in the same industry with market capitalizations ranging between UK£1.4b and UK£4.6b had a median total CEO compensation of UK£1.1m. Hence, we can conclude that Andrew Jones is remunerated higher than the industry median. Furthermore, Andrew Jones directly owns UK£9.3m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2020 | 2019 | Proportion (2020) |
Salary | UK£544k | UK£533k | 19% |
Other | UK£2.3m | UK£2.2m | 81% |
Total Compensation | UK£2.8m | UK£2.7m | 100% |
Talking in terms of the industry, salary represented approximately 38% of total compensation out of all the companies we analyzed, while other remuneration made up 62% of the pie. LondonMetric Property sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at LondonMetric Property Plc's Growth Numbers
LondonMetric Property Plc has reduced its earnings per share by 24% a year over the last three years. Its revenue is up 33% over the last year.
Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has LondonMetric Property Plc Been A Good Investment?
Most shareholders would probably be pleased with LondonMetric Property Plc for providing a total return of 41% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
As previously discussed, Andrew is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Still, shareholder returns over the last three years,and recent revenue growth have been trending northwards. Sadly, EPS growth did not follow suit, remaining during this time. Although we would have liked to see EPS growth, positive shareholder returns, and growing revenues make us believe CEO compensation is reasonable.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 4 warning signs for LondonMetric Property you should be aware of, and 2 of them don't sit too well with us.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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