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Does Barclays PLC's (LON:BARC) CEO Pay Reflect Performance?

Simply Wall St

Jes Staley became the CEO of Barclays PLC (LON:BARC) in 2015. First, this article will compare CEO compensation with compensation at other large 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. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Barclays

How Does Jes Staley's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Barclays PLC has a market cap of UK£24b, and is paying total annual CEO compensation of UK£3.4m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£2.4m. When we examined a group of companies with market caps over UK£6.6b, we found that their median CEO total compensation was UK£4.0m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.

So Jes Staley receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at Barclays has changed over time.

LSE:BARC CEO Compensation, August 19th 2019

Is Barclays PLC Growing?

Barclays PLC has increased its earnings per share (EPS) by an average of 52% a year, over the last three years (using a line of best fit). It saw its revenue drop -1.5% over the last year.

This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. You might want to check this free visual report on analyst forecasts for future earnings.

Has Barclays PLC Been A Good Investment?

Since shareholders would have lost about 5.5% over three years, some Barclays PLC shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Jes Staley is paid around what is normal the leaders of larger companies.

We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Barclays.

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.