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In 2015 Ian Sutcliffe was appointed CEO of Countryside Properties PLC (LON:CSP). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Countryside Properties
How Does Ian Sutcliffe’s Compensation Compare With Similar Sized Companies?
According to our data, Countryside Properties PLC has a market capitalization of UK£1.4b, and pays its CEO total annual compensation worth UK£2.3m. (This number is for the twelve months until September 2018). Notably, that’s an increase of 60% over the year before. We think total compensation is more important but we note that the CEO salary is lower, at UK£530k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of UK£766m to UK£2.5b. The median total CEO compensation was UK£1.4m.
It would therefore appear that Countryside Properties PLC pays Ian Sutcliffe more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Countryside Properties has changed from year to year.
Is Countryside Properties PLC Growing?
Over the last three years Countryside Properties PLC has grown its earnings per share (EPS) by an average of 55% per year (using a line of best fit). It achieved revenue growth of 20% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Countryside Properties PLC Been A Good Investment?
Most shareholders would probably be pleased with Countryside Properties PLC for providing a total return of 46% over three years. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
In Summary…
We compared total CEO remuneration at Countryside Properties PLC with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Countryside Properties.
If you want to buy a stock that is better than Countryside Properties, this free list of high return, low debt companies is a great place to look.
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 editorial-team@simplywallst.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.