Yahoo Finance Is Imperial Brands PLC (LON:IMB) Excessively Paying Its CEO?
Alison Cooper became the CEO of Imperial Brands PLC (LON:IMB) in 2010. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Next, we'll consider growth that the business demonstrates. 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 Imperial Brands
How Does Alison Cooper's Compensation Compare With Similar Sized Companies?
According to our data, Imperial Brands PLC has a market capitalization of UK£18b, and paid its CEO total annual compensation worth UK£2.1m over the year to September 2019. That's less than last year. While we always look at total compensation first, we note that the salary component is less, at UK£1.1m. When we examined a group of companies with market caps over UK£6.0b, we found that their median CEO total compensation was UK£3.6m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
This would give shareholders a good impression of the company, since most large companies pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Imperial Brands, below.
Is Imperial Brands PLC Growing?
On average over the last three years, Imperial Brands PLC has grown earnings per share (EPS) by 14% each year (using a line of best fit). In the last year, its revenue is up 5.4%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.
Has Imperial Brands PLC Been A Good Investment?
With a three year total loss of 35%, Imperial Brands PLC would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Imperial Brands PLC is currently paying its CEO below what is normal for large companies.
Since the business is growing, many would argue this suggests the pay is modest. Unfortunately, some shareholders may be disappointed with their returns, given the company's performance over the last three years. We're not critical of the remuneration Alison Cooper receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. Shareholders may want to check for free if Imperial Brands insiders are buying or selling shares.
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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