Jes Staley has been the CEO of Barclays PLC (LON:BARC) since 2015. First, this article will compare CEO compensation with compensation at other large companies. Then we’ll look at a snap shot of the business growth. 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.
How Does Jes Staley’s Compensation Compare With Similar Sized Companies?
According to our data, Barclays PLC has a market capitalization of UK£29b, and pays its CEO total annual compensation worth UK£3.4m. (This figure is for the year to December 2018). That’s less than last year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at UK£2.4m. We took a group of companies with market capitalizations over UK£6.2b, and calculated the median CEO total compensation to be UK£3.7m. Once you start looking at very large companies, you need to take a broader range, because there simply aren’t that many of them.
That means Jes Staley receives fairly typical remuneration for the CEO of a large company. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Barclays has changed over time.
Is Barclays PLC Growing?
On average over the last three years, Barclays PLC has grown earnings per share (EPS) by 40% each year (using a line of best fit). In the last year, its revenue is up 3.9%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings.
Has Barclays PLC Been A Good Investment?
Barclays PLC has not done too badly by shareholders, with a total return of 1.7%, 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.
Remuneration for Jes Staley is close enough to the median pay for a CEO of a large company .
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. As a result of these considerations, I would suggest the CEO pay is reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Barclays shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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