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Does Land Securities Group plc's (LON:LAND) CEO Pay Reflect Performance?

Simply Wall St

Rob Noel has been the CEO of Land Securities Group plc (LON:LAND) since 2012. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Land Securities Group

How Does Rob Noel's Compensation Compare With Similar Sized Companies?

According to our data, Land Securities Group plc has a market capitalization of UK£5.4b, and pays its CEO total annual compensation worth UK£1.6m. (This is based on the year to March 2019). That's below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at UK£797k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£3.3b to UK£9.9b. The median total CEO compensation was UK£2.8m.

Most shareholders would consider it a positive that Rob Noel takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

You can see a visual representation of the CEO compensation at Land Securities Group, below.

LSE:LAND CEO Compensation, August 16th 2019

Is Land Securities Group plc Growing?

On average over the last three years, Land Securities Group plc has shrunk earnings per share by 121% each year (measured with a line of best fit). In the last year, its revenue is down -8.8%.

Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. You might want to check this free visual report on analyst forecasts for future earnings.

Has Land Securities Group plc Been A Good Investment?

With a three year total loss of 22%, Land Securities Group plc would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

It appears that Land Securities Group plc remunerates its CEO below most similar sized companies.

The compensation paid to Rob Noel is lower than is usual at similar sized companies, but the eps growth is lacking, just like the returns (over three years). Considering all these factors, we'd stop short of saying the CEO pay is too high, but we don't think shareholders would want to see a pay rise before business performance improves. Shareholders may want to check for free if Land Securities Group insiders are buying or selling shares.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.