Key Things To Understand About Brighton Pier Group's (LON:PIER) CEO Pay Cheque

Anne Ackord became the CEO of The Brighton Pier Group PLC (LON:PIER) in 2017, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Brighton Pier Group

How Does Total Compensation For Anne Ackord Compare With Other Companies In The Industry?

At the time of writing, our data shows that The Brighton Pier Group PLC has a market capitalization of UK£13m, and reported total annual CEO compensation of UK£170k for the year to June 2020. We note that's a small decrease of 4.5% on last year. In particular, the salary of UK£138.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below UK£142m, we found that the median total CEO compensation was UK£239k. From this we gather that Anne Ackord is paid around the median for CEOs in the industry.

On an industry level, roughly 78% of total compensation represents salary and 22% is other remuneration. There isn't a significant difference between Brighton Pier Group and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at The Brighton Pier Group PLC's Growth Numbers

Over the last three years, The Brighton Pier Group PLC has shrunk its earnings per share by 75% per year. In the last year, its revenue is down 29%.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has The Brighton Pier Group PLC Been A Good Investment?

With a three year total loss of 65% for the shareholders, The Brighton Pier Group PLC would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As we noted earlier, Brighton Pier Group pays its CEO in line with similar-sized companies belonging to the same industry. On the other hand, EPS growth and total shareholder return have been negative for the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for Brighton Pier Group that investors should be aware of in a dynamic business environment.

Important note: Brighton Pier Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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. 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.
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