Mike Brennan has been the CEO of Norman Broadbent Plc (LON:NBB) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Mike Brennan’s Compensation Compare With Similar Sized Companies?
Our data indicates that Norman Broadbent Plc is worth UK£3.2m, and total annual CEO compensation is UK£212k. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at UK£181k. We took a group of companies with market capitalizations below UK£166m, and calculated the median CEO total compensation to be UK£250k.
So Mike Brennan is paid around the average of the companies we looked at. 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.
The graphic below shows how CEO compensation at Norman Broadbent has changed from year to year.
Is Norman Broadbent Plc Growing?
On average over the last three years, Norman Broadbent Plc has grown earnings per share (EPS) by 8.1% each year (using a line of best fit). In the last year, its revenue is up 44%.
It’s hard to interpret the strong revenue growth as anything other than a positive. And in that context, the modest EPS improvement certainly isn’t shabby. I’d stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list.
Has Norman Broadbent Plc Been A Good Investment?
Since shareholders would have lost about 37% over three years, some Norman Broadbent Plc shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
Mike Brennan is paid around the same as most CEOs of similar size companies.
The company cannot boast particularly strong per share growth. And it’s hard to argue that the returns over the last three years have delighted. So many would argue that the CEO is certainly not underpaid. Whatever your view on compensation, you might want to check if insiders are buying or selling Norman Broadbent shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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