In 2012 Phil Wild was appointed CEO of James Cropper PLC (LON:CRPR). First, this article will compare CEO compensation with compensation at similar sized 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.
How Does Phil Wild's Compensation Compare With Similar Sized Companies?
According to our data, James Cropper PLC has a market capitalization of UK£131m, and paid its CEO total annual compensation worth UK£247k over the year to March 2019. While we always look at total compensation first, we note that the salary component is less, at UK£198k. We looked at a group of companies with market capitalizations from UK£79m to UK£315m, and the median CEO total compensation was UK£513k.
Most shareholders would consider it a positive that Phil Wild takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at James Cropper has changed over time.
Is James Cropper PLC Growing?
On average over the last three years, James Cropper PLC has shrunk earnings per share by 8.8% each year (measured with a line of best fit). It achieved revenue growth of 5.2% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.
Has James Cropper PLC Been A Good Investment?
With a total shareholder return of 25% over three years, James Cropper PLC shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
It looks like James Cropper PLC pays its CEO less than similar sized companies.
Phil Wild is remunerated more modestly than is a normal at similar sized companies. But the company lacks earnings per share growth, and returns to shareholders are less than stellar. So while shareholders shouldn't be overly concerned about CEO compensation, we suspect most would prefer see improved performance, before increasing pay. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling James Cropper (free visualization of insider trades).
If you want to buy a stock that is better than James Cropper, this free list of high return, low debt companies is a great place to look.
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