The CEO of Bloomsbury Publishing plc (LON:BMY) is John Newton. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does John Newton’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Bloomsbury Publishing plc has a market cap of UK£169m, and is paying total annual CEO compensation of UK£909k. (This number is for the twelve months until February 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at UK£433k. We looked at a group of companies with market capitalizations from UK£76m to UK£305m, and the median CEO total compensation was UK£512k.
It would therefore appear that Bloomsbury Publishing plc pays John Newton more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. 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 Bloomsbury Publishing has changed from year to year.
Is Bloomsbury Publishing plc Growing?
Over the last three years Bloomsbury Publishing plc has shrunk its earnings per share by an average of 1.6% per year (measured with a line of best fit). In the last year, its revenue is up 8.4%.
The lack of earnings per share growth in the last three years is unimpressive. The fairly low revenue growth fails to impress given that the earnings per share is down. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.
Has Bloomsbury Publishing plc Been A Good Investment?
Most shareholders would probably be pleased with Bloomsbury Publishing plc for providing a total return of 66% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared the total CEO remuneration paid by Bloomsbury Publishing 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.We think many shareholders would be underwhelmed with the business growth over the last three years.
On the other hand, returns have been good, so the company is doing something right. Given this situation we doubt shareholders are particularly concerned about the CEO compensation. Whatever your view on compensation, you might want to check if insiders are buying or selling Bloomsbury Publishing shares (free trial).
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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