How Should Investors Feel About Barclays PLC’s (LON:BARC) CEO Pay?

Jes Staley became the CEO of Barclays PLC (LON:BARC) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. 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. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Barclays

How Does Jes Staley’s Compensation Compare With Similar Sized Companies?

Our data indicates that Barclays PLC is worth UK£27.9b, and total annual CEO compensation is UK£4m. That’s less than last year. We looked at a group of companies with market capitalizations over UK£6.1b and the median CEO compensation was UK£4m.

So Jes Staley 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 Barclays, below.

LSE:BARC CEO Compensation October 18th 18
LSE:BARC CEO Compensation October 18th 18

Is Barclays PLC Growing?

Over the last three years Barclays PLC has grown its earnings per share (EPS) by an average of 30% per year. Its revenue is down -4.5% over last year.

This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Barclays PLC Been A Good Investment?

With a three year total loss of 31%, Barclays PLC would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

Jes Staley is paid around the same as most CEOs of large companies.

We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. Considering the the positives we don’t think the CEO pays is too high, but it’s certainly hard to argue it is too low. So you may want to check if insiders are buying Barclays PLC shares with their own money (free access).

Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of 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.