Yahoo Finance What Did SSE plc's (LON:SSE) CEO Take Home Last Year?
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Alistair Phillips-Davies became the CEO of SSE plc (LON:SSE) in 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big 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 process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for SSE
How Does Alistair Phillips-Davies's Compensation Compare With Similar Sized Companies?
According to our data, SSE plc has a market capitalization of UK£12b, and pays its CEO total annual compensation worth UK£2.7m. (This is based on the year to March 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£864k. We looked at a group of companies with market capitalizations over UK£6.2b and the median CEO total compensation was UK£3.8m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
So Alistair Phillips-Davies receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at SSE has changed from year to year.
Is SSE plc Growing?
SSE plc has increased its earnings per share (EPS) by an average of 8.4% a year, over the last three years (using a line of best fit). It saw its revenue drop -16% over the last year.
I generally like to see a little revenue growth, but it is good to see EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. You might want to check this free visual report on analyst forecasts for future earnings.
Has SSE plc Been A Good Investment?
With a three year total loss of 7.5%, SSE plc would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Alistair Phillips-Davies is paid around what is normal the leaders of larger companies.
The per share growth could be better, in our view. And it's hard to argue that the returns over the last three years have delighted. So many would argue that the CEO is certainly not underpaid. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling SSE (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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. Thank you for reading.
