Is Anglo American plc’s (LON:AAL) CEO Overpaid Relative To Its Peers?
Mark Cutifani has been the CEO of Anglo American plc (LON:AAL) since 2013. First, this article will compare CEO compensation with compensation at other large companies. Next, we’ll consider growth that the business demonstrates. 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.
Check out our latest analysis for Anglo American
How Does Mark Cutifani’s Compensation Compare With Similar Sized Companies?
According to our data, Anglo American plc has a market capitalization of UK£22b, and pays its CEO total annual compensation worth US$4.0m. That’s a notable increase of 15% on last year. We looked at a group of companies with market capitalizations over UK£6.2b and the median CEO compensation was UK£3.9m.
So Mark Cutifani is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Anglo American has changed from year to year.
Is Anglo American plc Growing?
Over the last three years Anglo American plc has grown its earnings per share (EPS) by an average of 108% per year. Its revenue is up 18% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Anglo American plc Been A Good Investment?
I think that the total shareholder return of 297%, over three years, would leave most Anglo American plc shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
Remuneration for Mark Cutifani is close enough to the median pay for a CEO of a large company .
The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow 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.
