Kenny Alexander became the CEO of GVC Holdings PLC (LON:GVC) in 2007. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Kenny Alexander’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that GVC Holdings PLC has a market cap of UK£5.6b, and is paying total annual CEO compensation of UK£21m. That’s actually a decrease on the year before. We examined companies with market caps from €3.5b to €10.4b, and discovered that the median CEO compensation of that group was €3m.
As you can see, Kenny Alexander is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean GVC Holdings PLC is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at GVC Holdings has changed from year to year.
Is GVC Holdings PLC Growing?
GVC Holdings PLC has reduced its earnings per share by an average of 22% a year, over the last three years. It achieved revenue growth of 126% over the last year.
Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. It’s hard to reach a conclusion about business performance right now. This may be one to watch.
You might want to check this free visual report on analyst forecasts for future earnings.
Has GVC Holdings PLC Been A Good Investment?
I think that the total shareholder return of 157%, over three years, would leave most GVC Holdings PLC shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We examined the amount GVC Holdings PLC pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Over the last three years returns to investors have been great, though we might have liked stronger business growth. Considering this fine result for investors, we daresay the CEO compensation might be apt. Shareholders may want to check for free if GVC Holdings PLC insiders are buying or selling shares.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
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.