The Compensation For Billington Holdings Plc's (LON:BILN) CEO Looks Deserved And Here's Why

Key Insights

• Billington Holdings to hold its Annual General Meeting on 3rd of June
• CEO Mark Smith's total compensation includes salary of UK£298.0k
• Total compensation is similar to the industry average
• Over the past three years, Billington Holdings' EPS grew by 383% and over the past three years, the total shareholder return was 85%

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The performance at Billington Holdings Plc (LON:BILN) has been quite strong recently and CEO Mark Smith has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 3rd of June. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

See our latest analysis for Billington Holdings

How Does Total Compensation For Mark Smith Compare With Other Companies In The Industry?

At the time of writing, our data shows that Billington Holdings Plc has a market capitalization of UK£51m, and reported total annual CEO compensation of UK£510k for the year to December 2024. That's a notable increase of 21% on last year. We note that the salary of UK£298.0k makes up a sizeable portion of the total compensation received by the CEO.

In comparison with other companies in the British Construction industry with market capitalizations under UK£147m, the reported median total CEO compensation was UK£416k. From this we gather that Mark Smith is paid around the median for CEOs in the industry. What's more, Mark Smith holds UK£760k worth of shares in the company in their own name.

Talking in terms of the industry, salary represented approximately 38% of total compensation out of all the companies we analyzed, while other remuneration made up 62% of the pie. Billington Holdings pays out 58% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Billington Holdings Plc's Growth

Billington Holdings Plc has seen its earnings per share (EPS) increase by 383% a year over the past three years. Its revenue is down 15% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Billington Holdings Plc Been A Good Investment?

Boasting a total shareholder return of 85% over three years, Billington Holdings Plc has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 4 warning signs for Billington Holdings (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.