How Much is James Cropper's (LON:CRPR) CEO Getting Paid?

Simply Wall St

Phil Wild became the CEO of James Cropper PLC (LON:CRPR) in 2012, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether James Cropper pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for James Cropper

How Does Total Compensation For Phil Wild Compare With Other Companies In The Industry?

Our data indicates that James Cropper PLC has a market capitalization of UK£110m, and total annual CEO compensation was reported as UK£299k for the year to March 2020. Notably, that's an increase of 21% over the year before. In particular, the salary of UK£204.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the same industry with market caps ranging from UK£71m to UK£285m, we found that the median CEO total compensation was UK£333k. So it looks like James Cropper compensates Phil Wild in line with the median for the industry. What's more, Phil Wild holds UK£296k worth of shares in the company in their own name.

Component

2020

2019

Proportion (2020)

Salary

UK£204k

UK£198k

68%

Other

UK£95k

UK£49k

32%

Total Compensation

UK£299k

UK£247k

100%

Talking in terms of the industry, salary represented approximately 52% of total compensation out of all the companies we analyzed, while other remuneration made up 48% of the pie. According to our research, James Cropper has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

ceo-compensation
ceo-compensation

A Look at James Cropper PLC's Growth Numbers

James Cropper PLC has reduced its earnings per share by 15% a year over the last three years. It saw its revenue drop 17% over the last year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has James Cropper PLC Been A Good Investment?

Since shareholders would have lost about 32% over three years, some James Cropper PLC investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we noted earlier, James Cropper pays its CEO in line with similar-sized companies belonging to the same industry. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.

Shareholders may want to check for free if James Cropper insiders are buying or selling shares.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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