In 2015 Adrian Colman was appointed CEO of Wincanton plc (LON:WIN). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Adrian Colman's Compensation Compare With Similar Sized Companies?
According to our data, Wincanton plc has a market capitalization of UK£284m, and pays its CEO total annual compensation worth UK£1.5m. (This figure is for the year to March 2019). That's actually a decrease on the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£445k. We examined companies with market caps from UK£163m to UK£653m, and discovered that the median CEO total compensation of that group was UK£713k.
It would therefore appear that Wincanton plc pays Adrian Colman more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Wincanton has changed from year to year.
Is Wincanton plc Growing?
Over the last three years Wincanton plc has shrunk its earnings per share by an average of 20% per year (measured with a line of best fit). In the last year, its revenue is down -2.6%.
Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.
Has Wincanton plc Been A Good Investment?
Wincanton plc has served shareholders reasonably well, with a total return of 30% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
We compared the total CEO remuneration paid by Wincanton plc, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
And shareholder returns are decent but not great. So we think more research is needed, but we don't think the CEO underpaid. So you may want to check if insiders are buying Wincanton shares with their own money (free access).
Important note: Wincanton 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.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.