The CEO of Arbuthnot Banking Group PLC (LON:ARBB) is Henry Angest. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Henry Angest's Compensation Compare With Similar Sized Companies?
According to our data, Arbuthnot Banking Group PLC has a market capitalization of UK£156m, and paid its CEO total annual compensation worth UK£1.3m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at UK£1.2m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£81m to UK£325m. The median total CEO compensation was UK£538k.
Thus we can conclude that Henry Angest receives more in total compensation than the median of a group of companies in the same market, and of similar size to Arbuthnot Banking Group PLC. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Arbuthnot Banking Group, below.
Is Arbuthnot Banking Group PLC Growing?
Over the last three years Arbuthnot Banking Group PLC has grown its earnings per share (EPS) by an average of 121% per year (using a line of best fit). Its revenue is up 13% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Arbuthnot Banking Group PLC Been A Good Investment?
Given the total loss of 16% over three years, many shareholders in Arbuthnot Banking Group PLC are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by Arbuthnot Banking Group 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.
However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. So you may want to check if insiders are buying Arbuthnot Banking Group shares with their own money (free access).
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 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.