Here's Why We Think Land Securities Group Plc's (LON:LAND) CEO Compensation Looks Fair for the time being

Key Insights

• Land Securities Group's Annual General Meeting to take place on 11th of July
• Total pay for CEO Mark Allan includes UK£851.0k salary
• The overall pay is comparable to the industry average
• Land Securities Group's EPS grew by 2.2% over the past three years while total shareholder return over the past three years was 13%

Performance at Land Securities Group Plc (LON:LAND) has been reasonably good and CEO Mark Allan has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 11th of July, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for Land Securities Group

Comparing Land Securities Group Plc's CEO Compensation With The Industry

At the time of writing, our data shows that Land Securities Group Plc has a market capitalization of UK£4.7b, and reported total annual CEO compensation of UK£2.9m for the year to March 2024. Notably, that's an increase of 10% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£851k.

In comparison with other companies in the British REITs industry with market capitalizations ranging from UK£3.1b to UK£9.4b, the reported median CEO total compensation was UK£2.5m. So it looks like Land Securities Group compensates Mark Allan in line with the median for the industry. Moreover, Mark Allan also holds UK£2.3m worth of Land Securities Group stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	UK£851k	UK£820k	29%
Other	UK£2.0m	UK£1.8m	71%
Total Compensation	UK£2.9m	UK£2.6m	100%

Talking in terms of the industry, salary represented approximately 37% of total compensation out of all the companies we analyzed, while other remuneration made up 63% of the pie. It's interesting to note that Land Securities Group allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Land Securities Group Plc's Growth Numbers

Land Securities Group Plc has seen its earnings per share (EPS) increase by 2.2% a year over the past three years. In the last year, its revenue is up 4.2%.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but we're happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Land Securities Group Plc Been A Good Investment?

Land Securities Group Plc has served shareholders reasonably well, with a total return of 13% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 2 warning signs for Land Securities Group (1 shouldn't be ignored!) that you should be aware of before investing here.

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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com