Yahoo Finance How Is Shaftesbury's (LON:SHB) CEO Paid Relative To Peers?
This article will reflect on the compensation paid to Brian Bickell who has served as CEO of Shaftesbury PLC (LON:SHB) since 2011. This analysis will also assess whether Shaftesbury pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
See our latest analysis for Shaftesbury
Comparing Shaftesbury PLC's CEO Compensation With the industry
According to our data, Shaftesbury PLC has a market capitalization of UK£1.8b, and paid its CEO total annual compensation worth UK£1.1m over the year to September 2019. Notably, that's a decrease of 11% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£508k.
On comparing similar companies from the same industry with market caps ranging from UK£764m to UK£2.4b, we found that the median CEO total compensation was UK£1.3m. From this we gather that Brian Bickell is paid around the median for CEOs in the industry. Furthermore, Brian Bickell directly owns UK£7.4m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2019 | 2018 | Proportion (2019) |
Salary | UK£508k | UK£498k | 47% |
Other | UK£575k | UK£725k | 53% |
Total Compensation | UK£1.1m | UK£1.2m | 100% |
On an industry level, around 38% of total compensation represents salary and 62% is other remuneration. It's interesting to note that Shaftesbury pays out a greater portion of remuneration through salary, compared to the industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Shaftesbury PLC's Growth
Over the last three years, Shaftesbury PLC has shrunk its earnings per share by 80% per year. In the last year, its revenue changed by just 0.5%.
Overall this is not a very positive result for shareholders. And the flat revenue is seriously uninspiring. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Shaftesbury PLC Been A Good Investment?
Given the total shareholder loss of 39% over three years, many shareholders in Shaftesbury PLC are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.
To Conclude...
As previously discussed, Brian is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, earnings growth and total shareholder return have been negative for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Shaftesbury that investors should look into moving forward.
Important note: Shaftesbury is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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