Yahoo Finance How Much Did Bloomsbury Publishing's (LON:BMY) CEO Pocket Last Year?
The CEO of Bloomsbury Publishing plc (LON:BMY) is John Newton, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
See our latest analysis for Bloomsbury Publishing
Comparing Bloomsbury Publishing plc's CEO Compensation With the industry
Our data indicates that Bloomsbury Publishing plc has a market capitalization of UK£218m, and total annual CEO compensation was reported as UK£1.3m for the year to February 2020. Notably, that's an increase of 31% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£455k.
On comparing similar companies from the same industry with market caps ranging from UK£144m to UK£574m, we found that the median CEO total compensation was UK£901k. Hence, we can conclude that John Newton is remunerated higher than the industry median. What's more, John Newton holds UK£3.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2020 | 2019 | Proportion (2020) |
Salary | UK£455k | UK£444k | 36% |
Other | UK£795k | UK£507k | 64% |
Total Compensation | UK£1.3m | UK£951k | 100% |
Speaking on an industry level, nearly 44% of total compensation represents salary, while the remainder of 56% is other remuneration. It's interesting to note that Bloomsbury Publishing allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Bloomsbury Publishing plc's Growth
Bloomsbury Publishing plc's earnings per share (EPS) grew 10% per year over the last three years. In the last year, its revenue is up 6.9%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Bloomsbury Publishing plc Been A Good Investment?
We think that the total shareholder return of 77%, over three years, would leave most Bloomsbury Publishing plc shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
To Conclude...
As we noted earlier, Bloomsbury Publishing pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, Bloomsbury Publishing has produced strong EPS growth and shareholder returns over the last three years. As a result of the excellent all-round performance of the company, we believe CEO compensation is fair. The pleasing shareholder returns are the cherry on top. We wouldn't be wrong in saying that shareholders feel that John's performance creates value for the company.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Bloomsbury Publishing that investors should think about before committing capital to this stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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