Yahoo Finance How Much Did Balfour Beatty plc's (LON:BBY) CEO Pocket Last Year?
In 2015 Leo Quinn was appointed CEO of Balfour Beatty plc (LON:BBY). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Balfour Beatty
How Does Leo Quinn's Compensation Compare With Similar Sized Companies?
Our data indicates that Balfour Beatty plc is worth UK£1.5b, and total annual CEO compensation is UK£4.3m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£800k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£820m to UK£2.6b. The median total CEO compensation was UK£1.5m.
Thus we can conclude that Leo Quinn receives more in total compensation than the median of a group of companies in the same market, and of similar size to Balfour Beatty plc. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Balfour Beatty has changed over time.
Is Balfour Beatty plc Growing?
On average over the last three years, Balfour Beatty plc has grown earnings per share (EPS) by 71% each year (using a line of best fit). It achieved revenue growth of 3.3% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.
Has Balfour Beatty plc Been A Good Investment?
Given the total loss of 19% over three years, many shareholders in Balfour Beatty plc are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared the total CEO remuneration paid by Balfour Beatty 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.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. So you may want to check if insiders are buying Balfour Beatty shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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.
