How Much Did Land Securities Group plc's (LON:LAND) CEO Pocket Last Year?
In 2012 Rob Noel was appointed CEO of Land Securities Group plc (LON:LAND). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.
See our latest analysis for Land Securities Group
How Does Rob Noel's Compensation Compare With Similar Sized Companies?
Our data indicates that Land Securities Group plc is worth UK£7.1b, and total annual CEO compensation was reported as UK£1.6m for the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£797k. We examined companies with market caps from UK£3.1b to UK£9.2b, and discovered that the median CEO total compensation of that group was UK£2.5m.
A first glance this seems like a real positive for shareholders, since Rob Noel is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Land Securities Group has changed over time.
Is Land Securities Group plc Growing?
On average over the last three years, Land Securities Group plc has shrunk earnings per share by 125% each year (measured with a line of best fit). In the last year, its revenue is down 9.1%.
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. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Land Securities Group plc Been A Good Investment?
Land Securities Group plc has generated a total shareholder return of 10% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
It looks like Land Securities Group plc pays its CEO less than similar sized companies.
The compensation paid to Rob Noel is lower than is usual at similar sized companies. But the business isn't growing earnings per share, and the returns to shareholders haven't been wonderful. We would like to see EPS growth from the business, although we wouldn't say the CEO pay is high. Shareholders may want to check for free if Land Securities Group insiders are buying or selling shares.
If you want to buy a stock that is better than Land Securities Group, this free list of high return, low debt companies is a great place to look.
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.
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. Thank you for reading.
