Yahoo Finance Is James Halstead plc's (LON:JHD) CEO Paid At A Competitive Rate?
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Mark Halstead is the CEO of James Halstead plc (LON:JHD). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for James Halstead
How Does Mark Halstead's Compensation Compare With Similar Sized Companies?
According to our data, James Halstead plc has a market capitalization of UK£922m, and pays its CEO total annual compensation worth UK£412k. (This number is for the twelve months until June 2018). Notably, the salary of UK£412k is the vast majority of the CEO compensation. When we examined a selection of companies with market caps ranging from UK£756m to UK£2.4b, we found the median CEO total compensation was UK£1.3m.
A first glance this seems like a real positive for shareholders, since Mark Halstead is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at James Halstead has changed from year to year.
Is James Halstead plc Growing?
James Halstead plc has increased its earnings per share (EPS) by an average of 2.5% a year, over the last three years (using a line of best fit). Its revenue is up 3.6% over last year.
I'd prefer higher revenue growth, but it is good to see modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. It could be important to check this free visual depiction of what analysts expect for the future.
Has James Halstead plc Been A Good Investment?
James Halstead plc has generated a total shareholder return of 16% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
It appears that James Halstead plc remunerates its CEO below most similar sized companies.
It's well worth noting that while Mark Halstead is paid less than most company leaders (at companies of similar size), share price performance has been somewhat uninspiring. So shareholders may not be elated, but they shouldn't be worried about the CEO compensation, either. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling James Halstead (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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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. Thank you for reading.
