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Phil Wild became the CEO of James Cropper PLC (LON:CRPR) in 2012. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. 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.
How Does Phil Wild’s Compensation Compare With Similar Sized Companies?
Our data indicates that James Cropper PLC is worth UK£106m, and total annual CEO compensation is UK£249k. (This number is for the twelve months until 2018). While we always look at total compensation first, we note that the salary component is less, at UK£194k. We took a group of companies with market capitalizations below UK£155m, and calculated the median CEO compensation to be UK£245k.
That means Phil Wild 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 James Cropper has changed from year to year.
Is James Cropper PLC Growing?
Over the last three years James Cropper PLC has grown its earnings per share (EPS) by an average of 13% per year (using a line of best fit). In the last year, its revenue is up 5.1%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.
Has James Cropper PLC Been A Good Investment?
Boasting a total shareholder return of 93% over three years, James Cropper PLC has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Phil Wild is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling James Cropper shares (free trial).
If you want to buy a stock that is better than James Cropper, this free list of high return, low debt companies is a great place to look.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.