It's Unlikely That Mountview Estates P.L.C.'s (LON:MTVW) CEO Will See A Huge Pay Rise This Year

CEO Duncan Sinclair has done a decent job of delivering relatively good performance at Mountview Estates P.L.C. (LON:MTVW) recently. As shareholders go into the upcoming AGM on 11 August 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Mountview Estates

How Does Total Compensation For Duncan Sinclair Compare With Other Companies In The Industry?

Our data indicates that Mountview Estates P.L.C. has a market capitalization of UK£546m, and total annual CEO compensation was reported as UK£1.1m for the year to March 2021. That's a modest increase of 6.6% on the prior year. We note that the salary of UK£573.0k makes up a sizeable portion of the total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations ranging from UK£288m to UK£1.2b, the reported median CEO total compensation was UK£684k. Accordingly, our analysis reveals that Mountview Estates P.L.C. pays Duncan Sinclair north of the industry median. Moreover, Duncan Sinclair also holds UK£77m worth of Mountview Estates stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2021	2020	Proportion (2021)
Salary	UK£573k	UK£555k	52%
Other	UK£522k	UK£472k	48%
Total Compensation	UK£1.1m	UK£1.0m	100%

On an industry level, roughly 53% of total compensation represents salary and 47% is other remuneration. Our data reveals that Mountview Estates allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Mountview Estates P.L.C.'s Growth

Mountview Estates P.L.C.'s earnings per share (EPS) grew 1.1% per year over the last three years. It achieved revenue growth of 1.3% over the last year.

We're not particularly impressed by the revenue growth, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Mountview Estates P.L.C. Been A Good Investment?

We think that the total shareholder return of 43%, over three years, would leave most Mountview Estates P.L.C. 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...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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 is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for Mountview Estates that investors should be aware of in a dynamic business environment.

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. 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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