Shareholders May Be More Conservative With Bloomsbury Publishing Plc's (LON:BMY) CEO Compensation For Now

Under the guidance of CEO John Newton, Bloomsbury Publishing Plc (LON:BMY) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 21 July 2021. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Bloomsbury Publishing

Comparing Bloomsbury Publishing Plc's CEO Compensation With the industry

At the time of writing, our data shows that Bloomsbury Publishing Plc has a market capitalization of UK£279m, and reported total annual CEO compensation of UK£1.3m for the year to February 2021. We note that's an increase of 21% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£464k.

For comparison, other companies in the same industry with market capitalizations ranging between UK£144m and UK£577m had a median total CEO compensation of UK£585k. Hence, we can conclude that John Newton is remunerated higher than the industry median. Furthermore, John Newton directly owns UK£4.1m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2021	2020	Proportion (2021)
Salary	UK£464k	UK£455k	35%
Other	UK£872k	UK£647k	65%
Total Compensation	UK£1.3m	UK£1.1m	100%

On an industry level, around 71% of total compensation represents salary and 29% is other remuneration. Bloomsbury Publishing pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Bloomsbury Publishing Plc's Growth

Bloomsbury Publishing Plc has seen its earnings per share (EPS) increase by 13% a year over the past three years. It achieved revenue growth of 14% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Bloomsbury Publishing Plc Been A Good Investment?

Most shareholders would probably be pleased with Bloomsbury Publishing Plc for providing a total return of 57% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Bloomsbury Publishing that you should be aware of before investing.

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.

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