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Kenny Alexander has been the CEO of GVC Holdings PLC (LON:GVC) since 2007. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
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£3.6b, and is paying total annual CEO compensation of UK£21m. (This number is for the twelve months until December 2017). We think total compensation is more important but we note that the CEO salary is lower, at UK£838k. When we examined a selection of companies with market caps ranging from €1.8b to €5.7b, we found the median CEO total compensation was €2.2m.
Thus we can conclude that Kenny Alexander receives more in total compensation than the median of a group of companies in the same market, and of similar size to GVC Holdings PLC. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at GVC Holdings, below.
Is GVC Holdings PLC Growing?
Over the last three years GVC Holdings PLC has grown its earnings per share (EPS) by an average of 36% per year (using a line of best fit). In the last year, its revenue is up 272%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has GVC Holdings PLC Been A Good Investment?
GVC Holdings PLC has served shareholders reasonably well, with a total return of 28% over three years. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We compared the total CEO remuneration paid by GVC Holdings PLC, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. We also think investors are doing ok, over the same time period. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn’t call the CEO pay problematic. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at GVC Holdings.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity 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 firstname.lastname@example.org. 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.