Yahoo Finance How Much Is Big Yellow Group Plc (LON:BYG) CEO Getting Paid?
Jim Gibson has been the CEO of Big Yellow Group Plc (LON:BYG) since 1998, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Big Yellow Group.
Note: The company does not report funds from operations, and as a result, we have used earnings per share in our analysis.
View our latest analysis for Big Yellow Group
How Does Total Compensation For Jim Gibson Compare With Other Companies In The Industry?
Our data indicates that Big Yellow Group Plc has a market capitalization of UK£2.0b, and total annual CEO compensation was reported as UK£1.1m for the year to March 2020. That's a slightly lower by 3.9% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£400k.
For comparison, other companies in the same industry with market capitalizations ranging between UK£1.4b and UK£4.6b had a median total CEO compensation of UK£1.1m. From this we gather that Jim Gibson is paid around the median for CEOs in the industry. Moreover, Jim Gibson also holds UK£29m worth of Big Yellow Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2020 | 2019 | Proportion (2020) |
Salary | UK£400k | UK£350k | 35% |
Other | UK£737k | UK£832k | 65% |
Total Compensation | UK£1.1m | UK£1.2m | 100% |
On an industry level, roughly 38% of total compensation represents salary and 62% is other remuneration. Although there is a difference in how total compensation is set, Big Yellow Group more or less reflects the market in terms of setting the salary. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Big Yellow Group Plc's Growth
Big Yellow Group Plc has reduced its earnings per share by 24% a year over the last three years. In the last year, its revenue is up 2.4%.
Overall this is not a very positive result for shareholders. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Big Yellow Group Plc Been A Good Investment?
Most shareholders would probably be pleased with Big Yellow Group Plc for providing a total return of 53% 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...
As we touched on above, Big Yellow Group Plc is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. This doesn't look good when you see that EPS growth over the last three years has been negative. On the flip side, shareholder returns have been strong over the same time, which is certainly a positive sign. We do not think CEO compensation is a problem, but shareholders will probably want to see an increase in EPS before agreeing the business should pay any more.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 3 warning signs for Big Yellow Group that investors should look into moving forward.
Switching gears from Big Yellow Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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