Yahoo Finance Is Countryside Properties PLC's (LON:CSP) CEO Being Overpaid?
Ian Sutcliffe has been the CEO of Countryside Properties PLC (LON:CSP) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Countryside Properties
How Does Ian Sutcliffe's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Countryside Properties PLC has a market cap of UK£2.1b, and reported total annual CEO compensation of UK£2.7m for the year to September 2019. We note that's an increase of 21% above last year. We think total compensation is more important but we note that the CEO salary is lower, at UK£546k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from UK£1.5b to UK£4.9b, and the median CEO total compensation was UK£1.7m.
Thus we can conclude that Ian Sutcliffe receives more in total compensation than the median of a group of companies in the same market, and of similar size to Countryside Properties PLC. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Countryside Properties, below.
Is Countryside Properties PLC Growing?
Countryside Properties PLC has increased its earnings per share (EPS) by an average of 25% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 21%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Countryside Properties PLC Been A Good Investment?
Most shareholders would probably be pleased with Countryside Properties PLC for providing a total return of 116% over three years. 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.
In Summary...
We examined the amount Countryside Properties PLC pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. So you may want to check if insiders are buying Countryside Properties shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
