Yahoo Finance Should You Worry About Paragon Banking Group PLC's (LON:PAG) CEO Pay?
Nigel Terrington became the CEO of Paragon Banking Group PLC (LON:PAG) in 1995. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Paragon Banking Group
How Does Nigel Terrington's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Paragon Banking Group PLC has a market cap of UK£1.0b, and is paying total annual CEO compensation of UK£2.6m. (This figure is for the year to September 2018). We think total compensation is more important but we note that the CEO salary is lower, at UK£489k. We examined companies with market caps from UK£825m to UK£2.6b, and discovered that the median CEO total compensation of that group was UK£1.4m.
Thus we can conclude that Nigel Terrington receives more in total compensation than the median of a group of companies in the same market, and of similar size to Paragon Banking Group PLC. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Paragon Banking Group, below.
Is Paragon Banking Group PLC Growing?
Over the last three years Paragon Banking Group PLC has grown its earnings per share (EPS) by an average of 14% per year (using a line of best fit). In the last year, its revenue is up 21%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Paragon Banking Group PLC Been A Good Investment?
I think that the total shareholder return of 48%, over three years, would leave most Paragon Banking Group 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...
We examined the amount Paragon Banking Group PLC pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Paragon Banking Group (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
