Yahoo Finance Our Take On Redrow plc’s (LON:RDW) CEO Salary
John Tutte became the CEO of Redrow plc (LON:RDW) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. 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.
View our latest analysis for Redrow
How Does John Tutte’s Compensation Compare With Similar Sized Companies?
Our data indicates that Redrow plc is worth UK£2.0b, and total annual CEO compensation is UK£2.0m. That’s below the compensation, last year. When we examined a selection of companies with market caps ranging from UK£1.5b to UK£4.9b, we found the median CEO compensation was UK£2.0m.
So John Tutte is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Redrow has changed from year to year.
Is Redrow plc Growing?
On average over the last three years, Redrow plc has grown earnings per share (EPS) by 23% each year. Its revenue is up 16% over last year.
This demonstrates that the company has been improving recently. A good result. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Redrow plc Been A Good Investment?
I think that the total shareholder return of 33%, over three years, would leave most Redrow plc shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
John Tutte is paid around the same as most CEOs of similar size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if Redrow plc insiders are buying or selling shares.
Or you might rather take a peek at this analytical visualization of historic cash flow, 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.
