Should You Be Pleased About The CEO Pay At Brewin Dolphin Holdings PLC's (LON:BRW)
In 2013 David Nicol was appointed CEO of Brewin Dolphin Holdings PLC (LON:BRW). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Brewin Dolphin Holdings
How Does David Nicol's Compensation Compare With Similar Sized Companies?
Our data indicates that Brewin Dolphin Holdings PLC is worth UK£1.1b, and total annual CEO compensation was reported as UK£1.1m for the year to September 2019. That's actually a decrease on the year before. While we always look at total compensation first, we note that the salary component is less, at UK£432k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined companies with market caps from UK£769m to UK£2.5b, and discovered that the median CEO total compensation of that group was UK£1.4m.
That means David Nicol receives fairly typical remuneration for the CEO of a company that size. 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.
The graphic below shows how CEO compensation at Brewin Dolphin Holdings has changed from year to year.
Is Brewin Dolphin Holdings PLC Growing?
Over the last three years Brewin Dolphin Holdings PLC has grown its earnings per share (EPS) by an average of 6.2% per year (using a line of best fit). It achieved revenue growth of 3.1% over the last year.
I'd prefer higher revenue growth, but it is good to see modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. Shareholders might be interested in this free visualization of analyst forecasts.
Has Brewin Dolphin Holdings PLC Been A Good Investment?
Most shareholders would probably be pleased with Brewin Dolphin Holdings PLC for providing a total return of 34% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
David Nicol is paid around the same as most CEOs of similar size companies.
The company isn't showing particularly great growth, but shareholder returns have been pleasing. So considering most shareholders would be happy, we'd say the CEO pay is appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Brewin Dolphin Holdings (free visualization of insider trades).
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.
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.
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