Yahoo Finance How Should Investors React To Wincanton plc’s (LON:WIN) CEO Pay?
Adrian Colman has been the CEO of Wincanton plc (LON:WIN) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Wincanton
How Does Adrian Colman’s Compensation Compare With Similar Sized Companies?
Our data indicates that Wincanton plc is worth UK£300m, and total annual CEO compensation is UK£1.8m. That’s less than last year. We looked at a group of companies with market capitalizations from UK£156m to UK£624m, and the median CEO compensation was UK£655k.
It would therefore appear that Wincanton plc pays Adrian Colman 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 get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Wincanton has changed over time.
Is Wincanton plc Growing?
Wincanton plc has reduced its earnings per share by an average of 9.1% a year, over the last three years. It achieved revenue growth of 3.1% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the modest revenue growth over 12 months isn’t much comfort against the reduced earnings per share. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Wincanton plc Been A Good Investment?
Boasting a total shareholder return of 36% over three years, Wincanton plc has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
We compared total CEO remuneration at Wincanton plc with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.
However, we can’t argue with the strong returns to shareholders, over the same time period. Considering this, shareholders are probably not too worried about the CEO compensation.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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.
