The CEO of Bloomsbury Publishing plc (LON:BMY) is John Newton, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Comparing Bloomsbury Publishing plc's CEO Compensation With the industry
Our data indicates that Bloomsbury Publishing plc has a market capitalization of UK£163m, and total annual CEO compensation was reported as UK£1.3m for the year to February 2020. Notably, that's an increase of 31% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£455k.
On comparing similar companies from the same industry with market caps ranging from UK£77m to UK£309m, we found that the median CEO total compensation was UK£832k. This suggests that John Newton is paid more than the median for the industry. Moreover, John Newton also holds UK£2.3m worth of Bloomsbury Publishing stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Speaking on an industry level, nearly 40% of total compensation represents salary, while the remainder of 60% is other remuneration. There isn't a significant difference between Bloomsbury Publishing and the broader market, in terms of salary allocation in the overall compensation package. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Bloomsbury Publishing plc's Growth
Bloomsbury Publishing plc's earnings per share (EPS) grew 13% per year over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.
Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Bloomsbury Publishing plc Been A Good Investment?
Most shareholders would probably be pleased with Bloomsbury Publishing plc for providing a total return of 40% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
As we touched on above, Bloomsbury Publishing plc is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Importantly though, EPS growth and shareholder returns are very impressive over the last three years. Considering such exceptional results for the company, we'd venture to say CEO compensation is fair. And given most shareholders are probably very happy with recent returns, they might even think that John deserves a raise!
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for Bloomsbury Publishing that investors should be aware of in a dynamic business environment.
Switching gears from Bloomsbury Publishing, 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.
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