Yahoo Finance Is Greene King plc’s (LON:GNK) CEO Overpaid Relative To Its Peers?
Rooney Anand has been the CEO of Greene King plc (LON:GNK) since 2005. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
Check out our latest analysis for Greene King
How Does Rooney Anand’s Compensation Compare With Similar Sized Companies?
Our data indicates that Greene King plc is worth UK£1.6b, and total annual CEO compensation is UK£1.3m. (This number is for the twelve months until 2018). We think total compensation is more important but we note that the CEO salary is lower, at UK£645k. When we examined a selection of companies with market caps ranging from UK£790m to UK£2.5b, we found the median CEO compensation was UK£1.6m.
That means Rooney Anand 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.
You can see, below, how CEO compensation at Greene King has changed over time.
Is Greene King plc Growing?
On average over the last three years, Greene King plc has grown earnings per share (EPS) by 9.1% each year. It saw its revenue drop -1.8% over the last year.
I would argue that the lack of revenue growth in the last year is less than ideal, but I’m happy with the EPS growth. 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.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Greene King plc Been A Good Investment?
Given the total loss of 34% over three years, many shareholders in Greene King plc are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
Remuneration for Rooney Anand is close enough to the median pay for a CEO of a similar sized company .
The per share growth could be better, in our view. And it’s hard to argue that the returns over the last three years have delighted. So many would argue that the CEO is certainly not underpaid. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Greene King.
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings 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.
