Advertisement

How Should Investors React To Belvoir Group's (LON:BLV) CEO Pay?

Want to participate in a short research study? Help shape the future of investing tools and earn a $40 gift card!

This article will reflect on the compensation paid to Dorian Gonsalves who has served as CEO of Belvoir Group PLC (LON:BLV) since 2010. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Belvoir Group.

View our latest analysis for Belvoir Group

Comparing Belvoir Group PLC's CEO Compensation With the industry

According to our data, Belvoir Group PLC has a market capitalization of UK£43m, and paid its CEO total annual compensation worth UK£321k over the year to December 2019. That's a fairly small increase of 6.3% over the previous year. In particular, the salary of UK£188.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below UK£159m, we found that the median total CEO compensation was UK£209k. Accordingly, our analysis reveals that Belvoir Group PLC pays Dorian Gonsalves north of the industry median. What's more, Dorian Gonsalves holds UK£592k worth of shares in the company in their own name.

Component

2019

2018

Proportion (2019)

Salary

UK£188k

UK£183k

59%

Other

UK£133k

UK£119k

41%

Total Compensation

UK£321k

UK£302k

100%

Talking in terms of the industry, salary represented approximately 54% of total compensation out of all the companies we analyzed, while other remuneration made up 46% of the pie. Although there is a difference in how total compensation is set, Belvoir Group more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation
ceo-compensation

A Look at Belvoir Group PLC's Growth Numbers

Belvoir Group PLC's earnings per share (EPS) grew 33% per year over the last three years. In the last year, its revenue is up 43%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Belvoir Group PLC Been A Good Investment?

Belvoir Group PLC has generated a total shareholder return of 33% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

As previously discussed, Dorian is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, the earnings per share growth over three years is certainly impressive. We also note that, over the same time frame, shareholder returns haven't been bad. So, considering the EPS growth we do not wish to criticize CEO compensation, though we'd recommend further research on management.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Belvoir Group that investors should think about before committing capital to this stock.

Switching gears from Belvoir Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.