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Pat Ward became the CEO of Breedon Group plc (LON:BREE) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Breedon Group
How Does Pat Ward's Compensation Compare With Similar Sized Companies?
According to our data, Breedon Group plc has a market capitalization of UK£1.0b, and pays its CEO total annual compensation worth UK£1.1m. (This is based on the year to December 2018). Notably, that's an increase of 8.1% over the year before. While we always look at total compensation first, we note that the salary component is less, at UK£581k. When we examined a selection of companies with market caps ranging from UK£787m to UK£2.5b, we found the median CEO total compensation was UK£1.3m.
That means Pat Ward receives fairly typical remuneration for the CEO of a company that size. 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.
You can see, below, how CEO compensation at Breedon Group has changed over time.
Is Breedon Group plc Growing?
Over the last three years Breedon Group plc has grown its earnings per share (EPS) by an average of 19% per year (using a line of best fit). Its revenue is up 32% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
Has Breedon Group plc Been A Good Investment?
Given the total loss of 2.3% over three years, many shareholders in Breedon Group plc are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Pat Ward is paid around what is normal the leaders of comparable size companies.
We'd say the company can boast of its EPS growth, but we cannot say the same about the lacklustre shareholder returns (over the last three years). We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. Shareholders may want to check for free if Breedon Group insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.