Yahoo Finance Should You Worry About PPHE Hotel Group Limited's (LON:PPH) CEO Salary Level?
Boris Ivesha became the CEO of PPHE Hotel Group Limited (LON:PPH) in 2007. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for PPHE Hotel Group
How Does Boris Ivesha's Compensation Compare With Similar Sized Companies?
Our data indicates that PPHE Hotel Group Limited is worth UK£793m, and total annual CEO compensation was reported as UK£537k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at UK£417k. We examined companies with market caps from UK£311m to UK£1.2b, and discovered that the median CEO total compensation of that group was UK£916k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at PPHE Hotel Group has changed from year to year.
Is PPHE Hotel Group Limited Growing?
On average over the last three years, PPHE Hotel Group Limited has grown earnings per share (EPS) by 2.2% each year (using a line of best fit). It achieved revenue growth of 4.8% 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 PPHE Hotel Group Limited Been A Good Investment?
I think that the total shareholder return of 186%, over three years, would leave most PPHE Hotel Group Limited 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.
In Summary...
PPHE Hotel Group Limited is currently paying its CEO below what is normal for companies of its size.
Boris Ivesha is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. So you may want to check if insiders are buying PPHE Hotel Group shares with their own money (free access).
If you want to buy a stock that is better than PPHE Hotel Group, this free list of high return, low debt companies is a great place to look.
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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.
