In 2014 Zillah Byng-Thorne was appointed CEO of Future plc (LON:FUTR). 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 process should give us an idea about how appropriately the CEO is paid.
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How Does Zillah Byng-Thorne's Compensation Compare With Similar Sized Companies?
Our data indicates that Future plc is worth UK£924m, and total annual CEO compensation is UK£4.8m. (This is based on the year to September 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£400k. When we examined a selection of companies with market caps ranging from UK£316m to UK£1.3b, we found the median CEO total compensation was UK£884k.
Thus we can conclude that Zillah Byng-Thorne receives more in total compensation than the median of a group of companies in the same market, and of similar size to Future plc. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Future has changed over time.
Is Future plc Growing?
Future plc has increased its earnings per share (EPS) by an average of 94% a year, over the last three years (using a line of best fit). Its revenue is up 85% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. It could be important to check this free visual depiction of what analysts expect for the future.
Has Future plc Been A Good Investment?
Most shareholders would probably be pleased with Future plc for providing a total return of 936% over three years. 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.
We compared total CEO remuneration at Future plc with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Future.
If you want to buy a stock that is better than Future, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at email@example.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.