Mike Brennan became the CEO of Norman Broadbent Plc (LON:NBB) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. 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 Mike Brennan’s Compensation Compare With Similar Sized Companies?
Our data indicates that Norman Broadbent Plc is worth UK£7m, and total annual CEO compensation is UK£210k. That’s a notable increase of 43% on last year. We looked at a group of companies with market capitalizations under UK£154m, and the median CEO compensation was UK£242k.
That means Mike Brennan receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Norman Broadbent, below.
Is Norman Broadbent Plc Growing?
On average over the last three years, Norman Broadbent Plc has shrunk earnings per share by 14% each year. It achieved revenue growth of 41% over the last year.
As investors, we do are a bit wary of companies that have lower earnings per share, over three years. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching. We don’t have analyst forecasts, but shareholders might want to examine this free detailed historical graph of earnings, revenue and cash flow.
Has Norman Broadbent Plc Been A Good Investment?
Since shareholders would have lost about 16% over three years, some Norman Broadbent Plc shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
Mike Brennan is paid around the same as most CEOs of similar size companies.
The company cannot boast particularly strong per share growth. And shareholder returns have been disappointing over the last three years. Shareholders might not feel great about the fact that CEO pay increased on last year. So suffice it to say we don’t think the compensation is modest! CEO pay isn’t the only data point that can tell us about management of a company. So it makes sense to check how long the Board of Directors has been in place.
But note: Norman Broadbent may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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 firstname.lastname@example.org.