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Does Lookers plc's (LON:LOOK) CEO Pay Reflect Performance?

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In 2014 Andy Bruce was appointed CEO of Lookers plc (LON:LOOK). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Lookers

How Does Andy Bruce's Compensation Compare With Similar Sized Companies?

According to our data, Lookers plc has a market capitalization of UK£192m, and pays its CEO total annual compensation worth UK£633k. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at UK£368k. We examined companies with market caps from UK£79m to UK£318m, and discovered that the median CEO total compensation of that group was UK£509k.

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So Andy Bruce is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at Lookers, below.

LSE:LOOK CEO Compensation, July 3rd 2019
LSE:LOOK CEO Compensation, July 3rd 2019

Is Lookers plc Growing?

Earnings per share at Lookers plc are much the same as they were three years ago, albeit with a positive trend. It achieved revenue growth of 3.9% over the last year.

I'd prefer higher revenue growth, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. You might want to check this free visual report on analyst forecasts for future earnings.

Has Lookers plc Been A Good Investment?

Since shareholders would have lost about 45% over three years, some Lookers plc shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Andy Bruce is paid around the same as most CEOs of similar size companies.

The company cannot boast particularly strong per share growth. And we think the shareholder returns - over three years - have been underwhelming. So it would take a bold person to suggest the pay is too modest. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Lookers (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.

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.

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.