How Much Is LondonMetric Property Plc (LON:LMP) Paying Its CEO?

Andrew Jones has been the CEO of LondonMetric Property Plc (LON:LMP) since 2013, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether LondonMetric Property pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Note: The company does not report funds from operations, and as a result, we have used earnings per share in our analysis.

See our latest analysis for LondonMetric Property

How Does Total Compensation For Andrew Jones Compare With Other Companies In The Industry?

According to our data, LondonMetric Property Plc has a market capitalization of UK£2.1b, and paid its CEO total annual compensation worth UK£2.8m over the year to March 2020. That's a fairly small increase of 4.6% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at UK£544k.

For comparison, other companies in the same industry with market capitalizations ranging between UK£1.5b and UK£4.7b had a median total CEO compensation of UK£1.1m. This suggests that Andrew Jones is paid more than the median for the industry. What's more, Andrew Jones holds UK£9.7m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 36% of total compensation represents salary, while the remainder of 64% is other remuneration. LondonMetric Property sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

LondonMetric Property Plc's Growth

Over the last three years, LondonMetric Property Plc has shrunk its earnings per share by 24% per year. Its revenue is up 33% over the last year.

The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has LondonMetric Property Plc Been A Good Investment?

We think that the total shareholder return of 44%, over three years, would leave most LondonMetric Property Plc shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

As previously discussed, Andrew is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But shareholder returns and revenue growth have been very healthy as we saw before. Sadly, EPS growth did not follow suit, remaining during this time. All things considered, although EPS growth would've been nice, the positive investor returns and revenue growth lead us to believe Andrew is appropriately paid.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 4 warning signs for LondonMetric Property (2 are a bit unpleasant!) that you should be aware of before investing here.

Switching gears from LondonMetric Property, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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. 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.
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