Yahoo Finance Is LSL Property Services plc's (LON:LSL) CEO Pay Fair?
Ian Crabb became the CEO of LSL Property Services plc (LON:LSL) in 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for LSL Property Services
How Does Ian Crabb's Compensation Compare With Similar Sized Companies?
Our data indicates that LSL Property Services plc is worth UK£294m, and total annual CEO compensation was reported as UK£775k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at UK£412k. We looked at a group of companies with market capitalizations from UK£155m to UK£618m, and the median CEO total compensation was UK£687k.
So Ian Crabb receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at LSL Property Services has changed over time.
Is LSL Property Services plc Growing?
LSL Property Services plc has reduced its earnings per share by an average of 55% a year, over the last three years (measured with a line of best fit). Its revenue is down 4.2% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.
Has LSL Property Services plc Been A Good Investment?
Most shareholders would probably be pleased with LSL Property Services plc for providing a total return of 51% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Ian Crabb is paid around what is normal for the leaders of comparable size companies.
The company isn't growing earnings per share, but shareholder returns have been strong over the last three years. So we doubt many are complaining about the fairly normal CEO pay. CEO compensation is an important area to keep your eyes on, but we've also identified 3 warning signs for LSL Property Services (1 is potentially serious!) that you should be aware of before investing here.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
