Should You Worry About John Wood Group PLC’s (LON:WG.) CEO Pay Check?
Robin Watson has been the CEO of John Wood Group PLC (LON:WG.) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
Check out our latest analysis for John Wood Group
How Does Robin Watson’s Compensation Compare With Similar Sized Companies?
Our data indicates that John Wood Group PLC is worth UK£4.6b, and total annual CEO compensation is US$1m. We note that’s an increase of 21% above last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£3.1b to UK£9.2b. The median total CEO compensation was UK£3m.
A first glance this seems like a real positive for shareholders, since Robin Watson is paid less than the average compensation paid by similar sized companies. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at John Wood Group has changed over time.
Is John Wood Group PLC Growing?
On average over the last three years, John Wood Group PLC has shrunk earnings per share by 145% each year. Its revenue is up 114% over last year.
Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has John Wood Group PLC Been A Good Investment?
John Wood Group PLC has served shareholders reasonably well, with a total return of 32% over three years. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary…
John Wood Group PLC is currently paying its CEO below what is normal for companies of its size.
Robin Watson receives relatively low remuneration compared to similar sized companies. But the company isn’t exactly firing on all cylinders, from my perspective. However I do not find the CEO compensation to be concerning. Shareholders may want to check for free if John Wood Group PLC insiders are buying or selling shares.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
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 editorial-team@simplywallst.com.
