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Should You Worry About Bunzl plc's (LON:BNZL) CEO Salary Level?

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Frank van Zanten became the CEO of Bunzl plc (LON:BNZL) in 2016. First, this article will compare CEO compensation with compensation at other large companies. Then we'll look at a snap shot of the business growth. 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 Bunzl

How Does Frank van Zanten's Compensation Compare With Similar Sized Companies?

According to our data, Bunzl plc has a market capitalization of UK£8.3b, and pays its CEO total annual compensation worth UK£2.8m. (This figure is for the year to December 2018). That's just a smallish increase of 0.1% on last year. While we always look at total compensation first, we note that the salary component is less, at UK£836k. We took a group of companies with market capitalizations over UK£6.1b, and calculated the median CEO total compensation to be UK£3.6m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.

So Frank van Zanten is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Bunzl, below.

LSE:BNZL CEO Compensation, April 2nd 2019
LSE:BNZL CEO Compensation, April 2nd 2019

Is Bunzl plc Growing?

Bunzl plc has increased its earnings per share (EPS) by an average of 13% a year, over the last three years (using a line of best fit). Its revenue is up 5.8% over last year.

This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings.

Has Bunzl plc Been A Good Investment?

Bunzl plc has served shareholders reasonably well, with a total return of 33% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Frank van Zanten is paid around the same as most CEOs of large companies.

Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable. Shareholders may want to check for free if Bunzl insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.