Yahoo Finance Should You Worry About Taylor Wimpey plc’s (LON:TW.) CEO Pay Check?
Pete Redfern has been the CEO of Taylor Wimpey plc (LON:TW.) since 2007. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Taylor Wimpey
How Does Pete Redfern’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Taylor Wimpey plc has a market cap of UK£5.0b, and is paying total annual CEO compensation of UK£4m. That’s less than last year. We examined companies with market caps from UK£3.1b to UK£9.4b, and discovered that the median CEO compensation of that group was UK£3m.
Thus we can conclude that Pete Redfern receives more in total compensation than the median of a group of companies in the same market, and of similar size to Taylor Wimpey plc. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Taylor Wimpey has changed from year to year.
Is Taylor Wimpey plc Growing?
Taylor Wimpey plc has increased its earnings per share (EPS) by an average of 10% a year, over the last three years The trailing twelve months of revenue was pretty much the same as the prior period.
This demonstrates that the company has been improving recently. A good result. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Taylor Wimpey plc Been A Good Investment?
Since shareholders would have lost about 4.5% over three years, some Taylor Wimpey plc shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We examined the amount Taylor Wimpey 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.
However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Taylor Wimpey plc (free visualization of insider trades).
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
