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How Much is Big Yellow Group Plc’s (LON:BYG) CEO Getting Paid?

Jim Gibson has been the CEO of Big Yellow Group Plc (LON:BYG) since 1998. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Big Yellow Group

How Does Jim Gibson’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Big Yellow Group Plc has a market cap of UK£1.5b, and is paying total annual CEO compensation of UK£2.2m. That’s a notable increase of 156% on last year. When we examined a selection of companies with market caps ranging from UK£779m to UK£2.5b, we found the median CEO compensation was UK£1.5m.

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As you can see, Jim Gibson is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Big Yellow Group Plc is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at Big Yellow Group, below.

LSE:BYG CEO Compensation November 20th 18
LSE:BYG CEO Compensation November 20th 18

Is Big Yellow Group Plc Growing?

Big Yellow Group Plc saw earnings per share stay pretty flat over the last three years, albeit with a slight increase. Its revenue is up 6.8% over last year.

I’d prefer higher revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Big Yellow Group Plc Been A Good Investment?

Big Yellow Group Plc has generated a total shareholder return of 30% 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…

We compared the total CEO remuneration paid by Big Yellow Group 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.

We generally prefer to see stronger EPS growth, and we’re not particularly impressed with the total shareholder return, over the last three years. In conclusion we think the company should definitely focus on improving the business before awarding any large pay rises.

Or you might prefer examine intently this intuitive graph showing past 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.