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Graham Jennings has been the CEO of Northern Bear PLC (LON:NTBR) since 2012. First, this article will compare CEO compensation with compensation at similar sized companies. 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 Graham Jennings’s Compensation Compare With Similar Sized Companies?
Our data indicates that Northern Bear PLC is worth UK£12m, and total annual CEO compensation is UK£240k. (This number is for the twelve months until March 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at UK£144k. We looked at a group of companies with market capitalizations under UK£153m, and the median CEO total compensation was UK£238k.
So Graham Jennings 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 Northern Bear has changed from year to year.
Is Northern Bear PLC Growing?
Over the last three years Northern Bear PLC has grown its earnings per share (EPS) by an average of 13% per year (using a line of best fit). In the last year, its revenue is up 4.5%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Northern Bear PLC Been A Good Investment?
Most shareholders would probably be pleased with Northern Bear PLC for providing a total return of 57% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Graham Jennings is paid around what is normal the leaders of comparable size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Northern Bear (free visualization of insider trades).
Important note: Northern Bear may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.