Yahoo Finance How Is Westminster Group's (LON:WSG) CEO Paid Relative To Peers?
Peter Fowler is the CEO of Westminster Group PLC (LON:WSG), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. 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 Westminster Group
How Does Total Compensation For Peter Fowler Compare With Other Companies In The Industry?
At the time of writing, our data shows that Westminster Group PLC has a market capitalization of UK£10m, and reported total annual CEO compensation of UK£201k for the year to December 2019. That's a notable decrease of 35% on last year. Notably, the salary which is UK£157.0k, represents most of the total compensation being paid.
On comparing similar-sized companies in the industry with market capitalizations below UK£152m, we found that the median total CEO compensation was UK£236k. From this we gather that Peter Fowler is paid around the median for CEOs in the industry. What's more, Peter Fowler holds UK£406k worth of shares in the company in their own name.
Component | 2019 | 2018 | Proportion (2019) |
Salary | UK£157k | UK£157k | 78% |
Other | UK£44k | UK£153k | 22% |
Total Compensation | UK£201k | UK£310k | 100% |
On an industry level, roughly 74% of total compensation represents salary and 26% is other remuneration. There isn't a significant difference between Westminster Group and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Westminster Group PLC's Growth
Over the past three years, Westminster Group PLC has seen its earnings per share (EPS) grow by 49% per year. Its revenue is up 26% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Westminster Group PLC Been A Good Investment?
Given the total shareholder loss of 38% over three years, many shareholders in Westminster Group PLC are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
As we touched on above, Westminster Group PLC is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Meanwhile, shareholder returns paint a sorry picture for the company, finishing in the red over the last three years. However, EPS growth is positive over the same time frame. Overall, we wouldn't say Peter is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for Westminster Group that investors should think about before committing capital to this stock.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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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