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How Much Did Great Portland Estates Plc’s (LON:GPOR) CEO Pocket Last Year?

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Toby Courtauld has been the CEO of Great Portland Estates Plc (LON:GPOR) since 2002. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Great Portland Estates

How Does Toby Courtauld’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Great Portland Estates Plc has a market cap of UK£2.0b, and is paying total annual CEO compensation of UK£1.2m. (This figure is for the year to March 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at UK£574k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£1.5b to UK£4.9b. The median total CEO compensation was UK£1.9m.

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Most shareholders would consider it a positive that Toby Courtauld takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it’s important we delve into the performance of the actual business.

The graphic below shows how CEO compensation at Great Portland Estates has changed from year to year.

LSE:GPOR CEO Compensation, February 22nd 2019
LSE:GPOR CEO Compensation, February 22nd 2019

Is Great Portland Estates Plc Growing?

Over the last three years Great Portland Estates Plc has shrunk its earnings per share by an average of 99% per year (measured with a line of best fit). It achieved revenue growth of 204% over the last year.

As investors, we are a bit wary of companies that have lower earnings per share, over three years. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching. You might want to check this free visual report on analyst forecasts for future earnings.

Has Great Portland Estates Plc Been A Good Investment?

Great Portland Estates Plc has served shareholders reasonably well, with a total return of 15% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary…

It appears that Great Portland Estates Plc remunerates its CEO below most similar sized companies.

Toby Courtauld receives relatively low remuneration compared to similar sized companies. But the company isn’t exactly firing on all cylinders, from my perspective. So shareholders may not be elated, but they shouldn’t be worried about the CEO compensation, either. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Great Portland Estates.

Important note: Great Portland Estates may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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.