Why PZ Cussons Plc's (LON:PZC) CEO Pay Matters To You
In 2006 G. Kanellis was appointed CEO of PZ Cussons Plc (LON:PZC). 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for PZ Cussons
How Does G. Kanellis's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that PZ Cussons Plc has a market cap of UK£779m, and reported total annual CEO compensation of UK£802k for the year to May 2019. We think total compensation is more important but we note that the CEO salary is lower, at UK£604k. 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£864k.
That means G. Kanellis receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at PZ Cussons has changed from year to year.
Is PZ Cussons Plc Growing?
Over the last three years PZ Cussons Plc has shrunk its earnings per share by an average of 23% per year (measured with a line of best fit). In the last year, its revenue is down 6.8%.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has PZ Cussons Plc Been A Good Investment?
Given the total loss of 38% over three years, many shareholders in PZ Cussons Plc are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Remuneration for G. Kanellis is close enough to the median pay for a CEO of a similar sized company .
Returns have been disappointing and the company is not growing its earnings per share. Few would argue that it's wise for the company to pay any more, before returns improve. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling PZ Cussons (free visualization of insider trades).
If you want to buy a stock that is better than PZ Cussons, 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.
