The CEO of Picton Property Income Limited (LON:PCTN) is Michael Morris. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Michael Morris's Compensation Compare With Similar Sized Companies?
According to our data, Picton Property Income Limited has a market capitalization of UK£553m, and paid its CEO total annual compensation worth UK£851k over the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£240k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from UK£307m to UK£1.2b, we found the median CEO total compensation was UK£910k.
That means Michael Morris receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Picton Property Income has changed from year to year.
Is Picton Property Income Limited Growing?
Picton Property Income Limited has reduced its earnings per share by an average of 14% a year, over the last three years (measured with a line of best fit). It saw its revenue drop 4.9% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Picton Property Income Limited Been A Good Investment?
Most shareholders would probably be pleased with Picton Property Income Limited for providing a total return of 41% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Michael Morris is paid around the same as most CEOs of similar size companies.
We're not seeing great strides in earnings per share, but the company has clearly pleased some investors, given the returns over the last three years. So we can't see a reason to suggest the pay is inappropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling Picton Property Income shares (free trial).
If you want to buy a stock that is better than Picton Property Income, this free list of high return, low debt companies is a great place to look.
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