Yahoo Finance How Should Investors Feel About Future PLC’s (LON:FUTR) CEO Pay?
Zillah Byng-Thorne has been the CEO of Future PLC (LON:FUTR) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Future
How Does Zillah Byng-Thorne’s Compensation Compare With Similar Sized Companies?
According to our data, Future PLC has a market capitalization of UK£395m, and pays its CEO total annual compensation worth UK£2.5m. That’s a notable increase of 619% on last year. We examined companies with market caps from UK£156m to UK£626m, and discovered that the median CEO compensation of that group was UK£647k.
It would therefore appear that Future PLC pays Zillah Byng-Thorne more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Future has changed over time.
Is Future PLC Growing?
On average over the last three years, Future PLC has grown earnings per share (EPS) by 47% each year. In the last year, its revenue is up 36%.
This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Future PLC Been A Good Investment?
Boasting a total shareholder return of 244% over three years, Future PLC has done well by shareholders. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
In Summary…
We compared the total CEO remuneration paid by Future PLC, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
